Poor NFP numbers breathed a little life into EUR/USD on Friday but the move wasn’t totalling convincing. The 60 pip News spike contracted to a 32 pip Daily gain as PA failed to re-test Thursday’s break of DCZ 1.3475. The small pullback was sufficient to create a near doji and difficult trading week for the cross. Some spirited GBP selling early on Friday knocked the cream off the top of our S&R Trade which we closed for a total 38 pip profit.
We questioned last week, if EUR/USD was approaching the ‘Oversold’ area. The closing of DP/WP has answered that question as we enter the new week. The two are almost as one, Daily having slipped ever so slightly, into the ‘Mixed’ Zone between Week;y & Monthly. Intraday Charts were showing reversal potential mid last week but I believe there remains strong Bearish pressure and my bias is Short. DP lies untested under PA. Some early buying would suit me to play a Short.
The Day Ahead
The Bulls will need to prove they are interested outside of news before I can join them. Short to or under DP is what I will seek today.
High Impact News – CET
Have a Magic Monday all.