US & UK Bank Holidays become ours as well and yesterday’s 43 pip range on EUR/USD was once again a perfect example of why. Edge up through Asia session, sneak down in UK, then flatline for the rest of the day. Not for us.
A substantial change has overcome EUR/USD since this time last week when I was awaiting a resumption of the Bullish Trend. Lower Hi’s & Lo’s dominate Intraday charts and appear destined to “spread”. Pivots are Bearish, Daily being tested only once, in the last three trading days. This would indicate an oversold market but it ISN’T the case. 1.3115 seems a big target today and the confluence with our Support Trendline #1 a crucial level. A pullback to DP, is due but 1.3115 is likely! If the Bullish trend is to resume – it may launch there.
The Day Ahead
In the absence of a reversal pattern, it’s tough to be Bullish. I’ll look to play a Short to 1.3115 if the opportunity presents but a DP test first, would be best practice.
High Impact News – C.E.T.
|4:00pm||USD||ISM Manufacturing PMI|
Terrific Tuesday everyone.