Happy New Week Surfers – not much has changed I’m afraid.
Our “No Trade Friday” produced the biggest Daily Range of last week with 94 pips of Price Action, dragging EUR/USD back into the middle of the consolidation range. The attempt to break 1.2800 from Thursday, squashed for the most part before a late rally, had the week closing a mere 26 pips from where it opened, at 1.2736.
In consideration of the above – no surprise that technically, we’ve seen little change and EUR/USD enters another week without clear direction. Intraday charts are displaying a malformed inverted Head & Shoulders which may set the scene for today and gives me a slightly Bullish sentiment. The combined presence of Daily/Weekly Pivots BELOW Price Action tempers that feeling somewhat however – the Pivot combo always magnetic. We have Price Action fairly well trapped between our Hotspots, the Resistance version being tested as I write. Without a clear trend, we are free to trade in either direction but will keep our risk very small, until Price Action leaves this haven it seems to have found between 1.2660 & 1.2800.
The Day Ahead
With a slight Bullish bias, I favour long (small stake) entries but would prefer to see Price Action re-test Daily Pivot, prior to launching itself. With that in mind, maybe a false break of our Resistance Trendline preceding a bounce off Daily Pivot, then another crack at 1.2800. Mmmmmm – sounds like a plan.
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