G’day Surfers – nice start to NFP Week!
EUR/USD played our intraday Trendline beautifully before using it as a launch pad for a very sharp 37 pip dash above our Long entry which eventually disclosed itself after a series of false breaks. We took full profit with the trade, a welcome start to the BIG NEWS week. Price Action went within a whisker of my sentimental target of yesterday (1.3080) before rebounding emphatically back to old favourite 1.3033 which again acted as Support, returning serve to again attack 1.3080 before settling in at around the 1.3050 level.
I can spot little sign of fatigue in the Bull run as Resistance Levels continue to be met & conquered. The little sign I do see is that of a double top on H4, making the break of the current mandatory consolidation period particularly interesting. Pivots remain Bullish and within elasticity parameters so the sentiment remains to the high side. With Daily Pivot untested right on the 1.3030 level, I would expect Price Action to join it however. Should Price Action leave 1.3030 in it’s wake, I would expect the 1.3115/20 area as the next port of call.
The Day Ahead
My Trendlines had Price Action in a very tight press which is NOT how I like to start the day. Rather, I like to see some settling space as Asian Traders punch the bundy and London get to work. The pre-session break of my provisional Resistance Trendline may well have provided that space. Trading Short at the moment is very dangerous, given the strength of the Bulls, yet my sentiment is for a further pullback to Daily Pivot. I will watch Price Action very closely as it reacts to the break and make a decision based on what I see. My preference being to find a long, after a test of Daily Pivot.
High Impact News
|9:00am||EUR||Spanish Unemployment Change|
Tremendous Tuesday to you.
Davide Franceschini | Chief Trader and Founder at SurfingThePips.com
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