G’day Surfers – OBAMA or ROMNEY, today’s the day.
An horrendous Unemployment number out of Spain forced an immediate EUR/USD 56 pips crash and then the market to go to sleep. I was calling EURO short term long in response to the magnetic force provided by a combined Daily/Weekly Pivot. This combo rarely fails to attract Price Action but yesterday was one of those rarities as EURO failed to gain support, post the Spanish announcement. We were waiting for Price Action to provide us with a tradeable trendline and it obliged, delivering us a Short entry which produced TP1 without effort but “the magnet” stepped in – preventing further falls and the trade closed at Break Even. We spotted a second entry but Price Action spiked past our entry point prior to the signal being sent so no action was taken. On an all too predictable slow Monday (apart from the News spike) we finished the day as we began it.
EURO is back under pressure as support levels diminish. Even my proprietary Intratrendline Support has yielded to downward forces. Pivots are confirming the Bearish trend and there appears little hope for an immediate reprieve. There’s a case for calling the cross a little oversold but even that’s drawing a long bow. 1.2747 looks the obvious next level of Support and it’s hard not to see EURO/USD testing that level today. For the glass half full brigade, I can offer a glimmer of hope IF Price Action can manage to crawl above Daily Pivot. The opportunity for a bounce off the top of my broken Support Trendline exists but it’s a big ask. Bears appear in control.
The Day Ahead
I’m not completely ruling Longs out today but I need some compelling evidence to suggest there are buyers around. In a sideways market, there exists higher highs & lows on smaller time frames but I need the break back above my Trendline and then a re-test before I will consider buying EUROS. Selling them has its own challenges, not the least of which is finding a Trendline and therefore Hotspot. Price Action will need to deliver that as the day progresses – watch and wait!
High Impact News
|9:15am||EUR||Spanish Services PMI|
Clearly the US Election result won’t be known today so that event will have minimal impact today.
My vote is for TRUTH, JUSTICE………………….not gonna happen – is it!!
Trust you have a Terrific Tuesday
Davide Franceschini | Chief Trader and Founder at SurfingThePips.com