An 84 pip bounce off our 1.3115 Daily Critical Zone (DCZ) after the NFP announcement, virtually sums up Friday’s market which, predictably, was a lacklustre day (apart from the News flourish).
With all the events of last week now behind us, Technicals should be back to their reliable best. An untested Daily Pivot leads a Bearish Pivot formation that found a base at the aforementioned DCZ. So, first challenge of the week is to recognise if the bounce is sustainable and therefore the end of retracement OR, is the Bearish movement of the past fortnight, to continue? Whilst Price Action (PA) remains above the 1.3115 DCZ and our Major Support Trendline #1, there is reason to be Bullish. Under, the reverse applies.
The Day Ahead
The consolidation must shortly break but picking a direction is tough (as I write, it appears to be North). Perhaps a sideline position is best until PA shows it’s intention. Should PA give me the opportunity, I’ll look to play the DP test but Monday’s market is often lacking substance.
High impact News
Hope the week treats you well.