The 1.2500 psychological level and 1.2510 DCZ were enough Support to stop the 300 pip week long fall on Friday despite a further 88 pips being conceded. DP was passed through and the session was yet another bounty for the Bears.
1.2500/1.2510 becomes the new line in the sand and the market gapped below those levels over the weekend. EUR/USD remains under extreme pressure and it remains very difficult to be anything but Bearish. The open gap and an untested DP might give intraday traders a short term target, making it a little uncomfortable to enter Short but it is still the overwhelming bias.
The Day Ahead
I’m always up for a DP test trade should one setup but momentum may well be too strong, even for that today. Never say never but I’m thinking Short.
High Impact News – CET
|4:00pm||USD||ISM Manufacturing PMI|
Magic Monday everyone.