For those disciplined enough to exit at first Resistance (albeit a weak level): http://clip2net.com/s/6K7QZ0 there was profit to be banked yesterday, with our Long entry. For the rest of us – a Break Even trade that, to be fair, found a ‘struggling’, lacklustre market – typical Monday really! We were looking for a Higher Low to enable us to trade the pullback to Daily Pivot (DP). only M30 could produce one early. It was sufficient when a strong Surfing The Pips Secret Candle Pattern arrived shortly after, to place a small counter trend trade – we did!
Pivots are Bearish, DP has been tested and Price Action (PA) has found Resistance at yesterday’s High. 1.3450 beckons below and I believe it’s the crucial level today. Should it hold as Support once again, PA will rally back into the range (1,3450 – 1.3700) where EUR/USD has spent most of the last five months. If it doesn’t, the Low of that period (1.3295) could be next stop.
The Day Ahead
Definitely favouring Shorts but conscious of the base that has formed on our long term trendline. Watching closely if a Higher Low forms on H4!
High Impact News
Not today – but on the way!
Terrific Tuesday everyone.