The massive flow “over the falls” of EUR/USD was “plugged” yesterday as Daily Critical Zone (DCZ) 1.3450 put an abrupt halt to the EURO selloff. Price Action “splashed back” some 82 pips. Most of that was attributable to Asia Session on an otherwise typical Monday Market.
The DCZ looks a beaut place for the EURO recovery to begin but boy, it’s a big ask to push this gusher back. Hammer fans will be tickled pink where that candle has developed and having asked for a decent pullback, I should be ready to rumble Long. Not yet a reversal pattern for me however so caution required. Pivots have assumed the Short position so I’m not convinced the flow has ended.
The Day Ahead
Hotspots are like hens teeth today so a lot of emphasis on the one Resistance Trendline we have to play with. I’ll take my lead from PA but I’d have to say I’m biased towards the Bears.
High Impact News – CET
|4:00pm||USD||ISM Non-Manufacturing PMI|
Have a Terrifc Tuesday.