G’day Surfers – Break & Re-test Delivered
The two ingredients necessary to get EUR/USD moving, combined forces beautifully yesterday to send the Bulls on a 173 pip buying spree. Our analysis yesterday http://clip2net.com/s/4VEcPP displayed beautifully, the Technical reasoning for our Bullish bias. Some bad numbers out of Germany postponed the big move Northward but the BUY word was out and “Resistance proved futile”!
Typical after such a move, is the need for consolidation or pullback and that is certainly the case as we enter a new trading session. Asia has “settled” the buying fever by sending the market into consolidation BUT Daily Pivot (DP) is untested nearly 50 pips below Price Action (PA). I would be more than pleased if the market obliged us by pulling back to DP, thereby allowing us to buy some more EUROs. Not surprisingly, the Pivots are now in perfect Bullish formation.
The Day Ahead
The re-test bounce off our former Resistance Trendline has given EUR/USD some room to move and I can definitely see 1.3285 as a potential target. To grab a piece of that is my objective but yesterday’s big move has left me short on Hotspots. The recent break of a diminutive Descending Triangleis suggesting the DP test is likely. To Short EUR/USD against this very strong trend however is VERY RISKY. We will need some patience today!
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Wonderful Wednesday All.
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