Price Action obeyed orders once again yesterday but forgot to slow down long enough to give us an entry. The power of the pivots showed us that Price Action would take advantage of the bungee chord and once again test the upper limit of our year old Bearish Channel. Pip perfect, the script delivered. So a yo-yo day to be fair, with that suspect sell off pre-Asia, serving only to launch EURO in search of a weekly high.
Bulls are tap, tap, tapping on the door but as yet, can’t break through this year old resistance. The battle may well continue today, given the still Bullish nature of our Pivots. Now in the seventh week of this rally, I’m noticing a strange phenomenon. EUR/USD usually goes up by the staircase and down by the elevator and certainly that’s the case on bigger time frames. Studying intraday charts however, I see a different picture emerging with slow retracements followed by skyrocket rallies – strange days indeed! Should that pattern continue, I see today the potential for Price Action to test Daily Pivot prior to launching through the Channel’s resistance and tap, tap tapping on 1.26777’s door.
The Day Ahead
That’s the good news – bad news is we are deep into NFP week with a truck load of news to be announced this afternoon. If we are to find an entry this week, it will probably be as per the above scenario, before the action starts thick & fast, this afternoon. The possibility of a completely dead market also exists, for the very same reason. When trading becomes compulsory, I’ll worry about that. Until then, I’m happy to sit on the beach, watch the scenery and wait for the wave with my name on it.
High Impact News
||1:45pm||EUR||Minimum Bid Rate|
|2:15pm||USD||ADP Non-Farm Employment Change|
|2:30pm||EUR||ECB Press Conference|
|4:00pm||USD||ISM Non-Manufacturing PMI|
Have a good one.
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