EUR/USD took a big dive yesterday, to kick NFP week off in surprising fashion. We were anticipating some early selling but NOT a crash. By Monday standards, the fall was quite substantial. Price Action (PA) didn’t setup for us to catch the move, in fact we were waiting for a Long entry. It was clearly ignored so entries were nil.
A Double Bottom dominates the intraday Landscape this morning as PA heads towards correcting the untested status of Daily Pivot (DP), which has snuck back below Weekly – just! This re-positioning reflects the now Mixed directional scenario (not unusual for NFP week). The Double Bottom has given us a hint but I don’t trust it very much!!
The Day Ahead
The DP/WP combo might just be enough Resistance to push PA a little lower so my early bias is Short, after a DP Test. I’ll re-assess at our Support Trendline or 1.3450 Daily Critical Zone.
High Impact News
|Spanish Unemployment Change
Terrific Tuesday everyone.