EUR/USD was back on the See Saw on Friday, falling 80 pips after Asia & through London Sessions, before rebounding 72, during New York to gives us a doji, week closing day. Both moves started at respective Daily Critical Zones (DCZ’s) 1.3115 & 1.3030. These are the boundaries of the range the cross has traded in, since the break of 1.3030 this time last week.
The new week has Weekly Pivot taking closer proximity to the already tested Daily, whilst the Pivot order is maintaining a Bullish formation. I asked the question on Friday “was the pullback sufficient” for EUR/USD to continue to climb? I’m not convinced the retracement IS complete and Intraday charts are looking in preparation for some more selling. An imperfect Head & Shoulders #1 on H4 & my (still awaiting a re-test) former Resistance Trendline #2 are supporting that theory. So, not as clear cut as the clearly Bullish Trend would have us believe. Playing the correct Trendlines/Hotspots will be crucial to trading success today and with Daily Pivot (DP) strategically placed between Support & Resistance Trendlines. it may be the key.
The Day Ahead
Whilst Price Action remains below Daily Pivot, I’m favouring pullbacks BUT – a break back above DP and I’m ready to continuing buying EUROs.
High Impact News
Have a great Monday & Week everyone.