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05 NOV 2012 | Free Daily Analysis | EURUSD : MAGNETIC NORTH BECKONS

 

Happy New Week Surfers – have we found a trend?

Yesterday’s Report

I never pay much attention to NFP news, despite it’s impact on the markets – as I don’t trade around it. Just a little curious on Fridays numbers however, given tomorrow’s important date in USA. Certainly the positive unemployment figures produced upside for the Greenback and therefore the reverse for EUR/USD. As we suggested, the 1.2908 level was broken as indeed, was our long term Support Trendline. In fact EURO experienced its worst day in three months, closing the week off by the exact amount of pips (112) conceded on Friday – mmmmm? NFP Friday = no trading for us.

Technical Analysis

Pivots are now in perfect Bearish formation. Weekly and Daily have once again combined forces and will prove very difficult for Price Action to ignore however. A decent double bottom has formed on smaller time frames and not surprisingly, given recent good Support at around 1.2800 – 1.2815 level. I’m certainly a short term fan of a rally to Daily Pivot but would like some confirmation of the reversal, prior to entry. I have the double bottom so a higher low/high would be helpful. Such Price Action would also assist in the formation of some Trendlines to trade, where currently they are in short supply.

The Day Ahead

Currently it’s NLNS (No Long No Short) – tough to go long without confirmation of the reversal and tough to go short with the BIG Magnet of DP/WP untested to the North. Ideally, Price Action will provide some highs/lows that I may find an intraday trendline to play the long to DP. Did I mention it’s MONDAY – slow traffic expected.

High Impact News

 

9:00am EUR Spanish Unemployment Change
4:00pm USD ISM Non-Manufacturing PMI

Have a great US Election Eve – could be an interesting week.

Davide Franceschini | Chief Trader and Founder at SurfingThePips.com

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