Happy New Week Surfers
Financial Markets care only about one thing on the first Friday after month end – how many jobs were created in the previous month in the U.S. One day short of it’s anniversary since it last occurred – that number topped 200,000, when announced on Friday. Predictably, that put the reversal from a Bear market in which EUR/USD had been trading well………..in REVERSE. The hard fought gains of the entire week were wiped out in a hurry and the week
closed not quite 15 pips below its open at 1.2998.
Despite the seeming ferocity of the EURO sell off, the cross bounced beautifully once again, off our former Resistance Trendline #1 which continues to offer good Support. The low created by that bounce forms somewhat of a Triple Bottom #2, perhaps an early sign that the selling might be over for now. It’s a little early to make that call but certainly a return to that Trendline would see EUR/USD under enormous pressure. A standout feature of today’s chart is the union of Daily & Weekly Pivots. A strong magnetic force is created by this pair being together so I absolutely expect Price Action to be joining them before day’s end.
The Day Ahead
The bounce off our Trendline and the untested Pivot combo has me with the Bulls today but the big move of Friday, makes reliable Trendlines difficult to find. Already, our only Resistance Trendline #3 near the Market has been broken. Perhaps a re-test or false break at this Hotspot will provide us with an entry……..we’ll see.
High Impact News
Have a great Monday.