EUR/USD ‘took off’ again on Friday, shooting straight from one DCZ 1.3700 to another 1.3815, thereby completing the 4th consecutive positive week for the cross. PA came agonisingly close to testing our long term Resistance Trendline that began it’s career as the high that preceded the Global Financial Crisis crash.
The market gapped down substantially over the weekend and we begin our week with price magnets pulling in both directions. Daily Pivot is ‘welded’ to Weekly, creating a vortex Short. The open gap is the opposing force and makes for an interesting contest between the Bulls & Bears today. I’m a big fan of the DP/WP’s magnetic force when in tandem and not so enamoured with trading gaps so my short term bias is clear. Though DP was tested in the first 5 mins of the trading week – I’m not sure that will be an adequate examination!
The Day Ahead
Its Monday in NFP Week and there’s an interesting situation unfolding with Russia/Ukraine so anything is possible but a crawling market is what I expect. I fancy a cheeky Short to the DP/WP combo should it present, as Plan A – Hotspots are scarce however.
High Impact News – CET
|All Day||ALL||G7 Meetings|
|3:00pm||EUR||ECB President Draghi Speaks|
|4:00pm||USD||ISM Manufacturing PMI|
Magic Monday all.