G’day Surfers – I trust the long weekend break was kind to you.
As you would expect of a US Bank Holiday, Price Action spent most of the day enjoying a sleep in, lying prostrate on the bed provided by Daily & Weekly Pivots. A forty pip “surge” post London close was as energetic as the market got, the Daily Range a snail paced 50 pips.
The inverted Head & Shoulders’ influence over EURO/USD has, in my humble opinion, almost reached its conclusion. Though my target (1.2677) of it’s reign hasn’t yet been achieved, my need to see symmetry in a timely fashion has been disappointed. That Price Action has finally reached the upper limit of our long term Bearish Channel is significant and it’s at this point where EURO must stand up to be counted OR fall once again, into the sin bin. Our Pivots are adamant that the rally will continue however as they stand in perfect Bullish formation. Price Action used Daily Pivot as a springboard early in today’s ASIA Session and has settled just above the 1.2600 level, where it’s now consolidating. A lack of tradeable trendlines needs addressing and I’m hopeful early Price Action will deliver on that, so we have a decent Hotspot to trade.
The Day Ahead
Frankly, I’m Bearish against what clearly, is a Bullish intraday setup. It would be impossible for me to trade that sentiment however, until I see evidence of a reversal – and as yet, I DON’T. Our Bearish Channel upper limit has me spooked but should I receive the go ahead for a Long entry with a clear TP1 prior to contact with it’s resistance OR as a bounce off it’s top side – happy days.
Have a great week