Thursday’s good USD news turned completely around as the “main event”, NFP data showed poor job creation in the States and the market reacted with a 100 pip spike. After a consolidating week, all roads led back to our 1.3285 Daily Critical Zone (DCZ).
As if last week didn’t exist, we once again find ourselves contemplating if the 1.3285 DCZ will hold EUR/USD. Since this time a week ago however, the DCZ has been tested 22 times on H4, only four times has Price Action (PA) closed above it. I suggested last week that PA might require a decent pullback prior to a successful “assault” – perhaps Thursday’s sell off provided that! An untested Daily Pivot has ducked below Weekly for the first time in more than 3 weeks, spoiling the Bullish scenario – for how long?? The Doji at Resistance http://clip2net.com/s/5vFyeS will have followers of conventional wisdom preparing for a fall – I’m not so sure about that.
The Day Ahead
I’m prepared to think Thursday’s pullback WAS enough to produce the break of 1.3285 so I’m Bullish. A test of DP will have me seeking entries Long.
High Impact News
|4:00pm||USD||ISM Non-Manufacturing PMI|
Magic Monday everyone.
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