EUR/USD approached but failed to test last week’s High, on Day 1 of our final trading week for 2013. The anticipated consolidation gained traction yesterday with Price Action (PA) positioning itself in the heart of the 1.3700 – 1.3815 DCZ’s. Smaller intraday charts failed to produce a trading opportunity but our Swing & Relax Strategy spotted a Long opportunity for which we await entry.
Pivots are Bullish with Daily (DP) tested and we therefore remain Long biased. Interestingly, EUR/USD is in it’s sixth consecutive positive week. Should that continue, it will be only the second time since the major crash of 2008, that six positives have been peeled off consecutively! The seemingly due pullback might well be waiting for the new 2013 High ( now 60 pips away) and even a test of the Trendline #1 that began, with the GFC five years ago. Yep – I’m Bullish.
The Day Ahead
I’d still like to take a runup at last week’s High & beyond so another test & bounce off 1.3700 would be my preferred option. Happy to take PA’s lead however.
High impact News – CET
|11:00am||EUR||German ZEW Economic Sentiment|
|USD||Core CPI m/m|
Terrific Tuesday everyone.