G’day Surfers, snail’s pace rally off Support.
The biggest H1 candle yesterday was 27 pips, whilst H4 “managed” a little better, at 35. That was a fair reflection of a typical Monday market that simply rolled along without purpose. The Support we noted, did it’s job and EUR/USD rallied 60 pips as a result. The very slow nature of the market made it impossible for us to trade and no entry was contemplated.
Yesterday’s bounce failed to re-test our 1.2909 Daily Critical Zone (DCZ) & was less than convincing. The result is that we begin today in no man’s land, between the strong Support Trendline #1 that held the market up yesterday and our DCZ/former long term Support Trendline #2. With Pivots/trend clearly Bearish and Weekly Chart under the influence of the Three Black Sisters (see yesterday’s analysis), it remains tough to be Bullish but Intraday Higher Hi’s & Lo’s are interesting.
The Day Ahead
The Support Trendline #1 has turned EUR/USD around before and the first signs of a repeat are there again. I’m not ruling Longs out with that in mind but a Short setup is the preferred option. I can definitely see some “pin ball” action between the trendlines however.
High Impact News
Terrific Tuesday everyone.