I’ve been asking for a re-test of my former Resistance Trendline on the Daily Chart and yesterday, it was all but delivered. In a very choppy market, EUR/USD shed 92 pips (due to spirited selling through US Session) inside the Daily Critical Zone (DCZ) range. Price Action (PA) continues to use these parameters as bounce points, refusing to establish a trend. Indeed, our Support Trendline #1 produced a false break that may be useful as a trade pointer a little later today. No trading was possible during London session so we traded not.
Our Pivots have recognised the Consolidation Range and are now Mixed. A Bullish continuation Flag #2 has developed on Intraday Charts and as PA approaches the Resistance Trendline top of the flag, a potential break Long is a definite consideration. The disfigured head & Shoulders we noted yesterday http://clip2net.com/s/4VhOWn still provides a case for the Bears, as does the Lower High/Low sequence. Both extremes of the current range 1.3115 & 1.3030 continue to be the crucial levels however, a break of either should give us the beginning of a much needed trend.
The Day Ahead
My bias is Bullish on the back of the Flag Pattern and the near re-test of my former Resistance Trendline but the mixed & choppy nature of the market will keep me on full alert. As usual, it’s Hotspots & Setups……….nothing changes.
High Impact News – CET
|German ZEW Economic Sentiment
|Core CPI m/m
|ECB President Draghi Speaks
Terrific Tuesday everyone – our thoughts are with you Boston/USA!