Happy New Week Surfers.
The Daily candle suggests not much took place on Friday and for the most part, that was the case. Some activity later in the day may be defining in terms of this week’s direction however. After reaching DR-1, Price Action (PA) beat a hasty retreat but surprisingly, failed to reach an untested Daily Pivot (DP) which has done a criss-cross with Weekly. This needs some closer scrutiny but the day closed a mere 13 pips lower in a 69 pip range which suggests no direction at all.
The positional swap of DP/WP has re-instated the Bullish formation and Daily Chart continues to make higher Hi’s & Lo’s. Intraday Charts are consolidating after Thursday’s explosion and apart from a false breakout, have a Flag like appearance http://clip2net.com/s/5AAx5v . A reasonable case then, for Bullish continuation this week. Should PA find it’s way above DP today, I’ll be buying EUROs. There’s very little Intraday Support for the cross however so it might be Short before Long.
The Day Ahead
It being Monday, I’m not over enthusiastic about EUR/USD breaking the consolidation with purpose. I’ll go with Pivots/Flag and look for Long entries without much conviction and take profit quickly. The lack of Support is a concern.
High Impact News
May your Monday be Merry.