G’day Surfers – OMG soooo glad we rested!
What an absolute bore the market was on US Bank Holiday Monday, Price Action barely moving in a range of just 42 pips. Not surprisingly, it was a doji day but from a relevance point of view – I would forget the market even traded. Certainly, we were looking for a slow moving, illiquid day but what was transpired, was almost subliminal!
Well clearly very little has changed since yesterday’s analysis. Pivots remain Bearish, if displaying hints of EUR/USD being oversold as the gap we flagged yesterday between Weekly & Daily Pivots stands at 209 pips. This is by no means extreme but is worthy of note as is the fact that Daily is untested today after repelling Price Action yesterday. So the Pivots are beckoning for a pullback off the level we thought was a fait accompli yesterday (1.2677). The base formed at this level would indicate that pullback is a definite possibility. That doesn’t change of course, that EUR/USD remains under pressure so the pullback (should it occur) may be an opportunity to find a Short entry.
The Day Ahead
The above scenario is pretty much Plan A – if I can find evidence that the pullback is on, I will look for a cheeky counter trend trade Long, targeting Daily Pivot & once achieved, look for the continuation of the Bear Run and a possible Short Entry. Biggest problem I have is NO Trendlines/Hotspots until Price Action makes some.
High Impact News
German ZEW Economic Sentiment
Have a great day