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02 OCT 2012 | Free Daily Analysis | EURUSD : “CHEEKY” SPOT ON

 

G’day Surfers – Euro Express didn’t stop!!

Yesterday’s Report

The Battle of 1.29088 continued as the Euro Bullet Train departed 1.28000 and failed to stop at either of Monthly, Daily or Weekly Pivot Stations. It then smashed through it’s apparent destination (1.29088) then whipsawed back to it, before reaching the terminal between Weekly & Daily Pivots. Phew – exhausting, what? We had our tickets ready to board at Station False Breakout (thanks to our Cheeky Trendline) where it slowed as if to pick us up but like a playful tormentor, sped off without it’s passengers – US!! All part of the game of course and whilst we were stranded on the platform – our discipline was maintained by not taking an entry that didn’t fulfil our setup criteria. Next train just left it’s terminal!!

Technical Analysis

EURO paid no heed to strong resistance levels yesterday as it raced from the bottom of our Bearish Channel – to the top. Having pulled back to Daily Pivot late in US Session, it is again tap, tap, tapping at good old 1.29088. This has been the pattern for our last SEVEN trading days. This situation is poisonous as Price Action seemingly commits to a direction by breaking this level, only to bungee back the opposite way, producing false break after false break. I see only confusion with mixed Pivots, a dominant double top, questions asking if this Bear run is pullback or trend. Good cases for both Bulls & Bears but for mine – I’m not convinced this pullback has found sufficient Support to re-launch the continuation of EURO’s potential renaissance. For this reason my sentiment is ever so slightly Bearish, despite the commitment of yesterday’s buying. Daily Pivot is untested so is my first target.

The Day Ahead

The Trendline forming the top of our Bearish Channel is HOTSPOT number 1 today and I am prepared to trade what I see at this point. The potential for a Support Trendline to form between Daily & Weekly Pivots is my WARMSPOT & I favour Shorts to launch from there. 1.29088 has had it’s daily treat so it’s 50/50 from here – good setups essential for success.

High Impact News

Not today

Have a great one.

Davide Franceschini | Chief Trader and Founder at SurfingThePips.com
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