Thursday’s spilling of blood attracted EUR/USD predators who thrashed the waters on Friday. The carnage resulting in the cross shedding a further 99 pips and sending a resounding message to the market that 1.4000 is, for now, unacceptable and ensuring the month long range is now broken – but confusingly, in both directions.
The feeding frenzy has stripped bare our charts and only skeletal remnants are available for our analysis. The Pivotal backbone remains intact, with Daily/Weekly Pivots huddled together and untested well above PA. That scenario considered, there really is only one Short Term consideration – PULLBACK. Not much to play with Hotspot wise so PA needs to rebuild here for a bit.
Only pullback is on my radar and therefore Longs against the strong tide. Small stakes then, until some equilibrium returns (a DP Test).
Have a great start to the week.