The Bulls enjoyed their ‘day in the sun’ yesterday, taking EUR/USD away from the obvious target area of 1.3500 and the year to date’s Low of 1.3475. The mini rally continued the see sawing nature of the last four day’s PA, which now looks content in consolidation. We spotted an opportunity to join the Bulls with a Swing & Relax entry which currently, is Free Trading. Significantly, PA found Resistance at our 1.3585 DCZ, just shy of our 2nd Take Profit level.
DP has edged a little closer to WP as a result of yesterday’s PA but the Pivot formation is quite clearly Bearish. Intraday charts are displaying a Double Bottom #1 but 1.3500 and 1.3475 remain the short term areas of attraction. A significant (H4) Higher Low might see me re-assessing but for now, I’m with the Bears. DP has seen PA come within 2 pips today – do we dare call it tested?
The Day Ahead
I’d be happy for the rally to continue (taking our S&R Trade to target) before catching the Bear train South to 1.3475. I believe that’s wishful thinking!
High Impact News – CET
|German ZEW Economic Sentiment
|Core CPI m/m
Terrific Tuesday all.