G’day Surfers – Q – What’s the most obvious way to find a long trade? ………………….. A – Spot a perfect short scenario !!!!
Indeed this was the case yesterday as our Pivots were perfectly poised – tantalisingly Bearish. As we waited for two essential criteria to be met before shorting EURO, Price Action setup a long entry at our Resistance Trend Line prompting the usual course of action: Signals sent to our subscribers & those who trade our “A” Signals were taken into the Long. Only a few seconds later, TP1 was achieved and an acceptable TP2 was banked at our first exit point to bag 26 pips in total. This was a classic case of trading NOT what you FEEL – but what you SEE. Price Action went on to re-test our long term trend line creating yet another false breakout.
In absolute defiance of our Pivots, the virtual plethora of inverted Head & Shoulders remain the dominant force in both Daily & Intraday Charts. Price Action has leap frogged all three Pivots as a result of yesterdays rally, making a Long entry very difficult for me. Add to that the Daily is untested today, Daily & Weekly are stuck together like glue and I’m certain you get the picture………..PULLBACK required. It would appear that the Bulls are gathering a little momentum and the H/S factor suggests this rally has some fuel left in the tank so my sentiment is mixed as we go into London Session.
The Day Ahead
They will go directly Long without me but may spark my interest after some pullback. The Pivots still say Short is the go however and we may be able to snipe some pips if we get a short signal off our resistance trendline. As always, our Hotspots will guide us if Price action accepts our invitation.
High Impact News Today
|11:00am||EUR||German ZEW Economic Sentiment|
|2:30pm||USD||Core Retail Sales m/m|
|2:30pm||USD||Retail Sales m/m|
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