We were speculating on EUR/USD’s next Resistance Level before London opened yesterday. The answer came swiftly as Price Action (PA) tested Tuesday’s High, forming a Double Top #1. That reversal pattern did nothing to harm the prospects of our entry Short hitting target, which it did – and then some.
Perhaps the “near test” on Tuesday, of our former Resistance Trendline #2 wasn’t near enough! Yesterday’s crash fulfilled my Re-test request perfectly and it’s at this level, we find ourselves once again. Our Pivots remain Bullish (barely) as Weekly is all but joined by the untested Daily Pivot and this magnetic combination should be the focal point that launches the next movement. With PA back at it’s favourite Daily Critical Zone (1.3030), I can totally foresee a “rest day” at this level but if the past 2 days is anything to go by – anything could happen.
The Day Ahead
It’s as if the past 48hrs never existed but I’ll begin today with a somewhat tarnished Bullish bias. Yesterday’s sell off was emphatic and can’t be ignored. 1.3030 is the key level (again) so Hotspots in this vicinity (and they are very centralised) will command my attention.
High Impact News
|4:00pm||USD||Philly Fed Manufacturing Index|
|Day 1||ALL||G20 Meetings|
Have a great Thursday everyone.