If ever EUR/USD LOOKED likely to fall – it was yesterday. Untested Daily Pivot (DP) and open gap below PLUS, Price Action (PA) above DR-2. Yet, despite the apparent open invitation to Short, PA delivered a hint that there would be buying BEFORE selling. We took the hint and placed a Long that timed out before triggering but sure enough, the mini – rally came but there were no pips to be gained on a typical Monday market that produced a 55 pip see sawing day.
Never easy, to reconcile a gapped market especially with the gap still ajar. We must respect that all gaps close but not allow them full control of our analysis. If I disregard the gap, I see Bullish continuation signs – Flags on H4 pre &post (albeit once broken). Pivots are mixed with DP tested so direction is tough to call. I’m slightly Bullish but the open gap is worthy of note and will reduce my stakes until closed.
The Day Ahead
PA needs to give me some new Trendlines so Hotspots are light on. I’m not committed to anything, until that situation changes.
High Impact News – C.E.T.
Terrific Tuesday everyone.