Price Action kicked into gear and gave us both Long & Short signals, early in the day. The gear selected was reverse as EUR/USD continued it’s pullback from the highs of last week. We found the acceleration point beautifully and the bungee chord allowed us our first Take Profit level and the trigger for moving stops to entry but the elasticity point was reached shortly after and booiinngg – back to our launch pad. With 15 pips in the bank, we allowed the bungee to regain it’s composure & found nothing else to trade.
1.30 the number and our long term strong S/R @ 1.3033 have had Price Action in a stranglehold for 2 days as the market decides exactly what QE111, BOJ intervention, Spain’s request for assistance etc……………………all mean. The double top that formed on Monday has maintained it’s influence (albeit soft) throughout this week, forcing Daily & Weekly Pivot to close ranks. This pair maintain Bullish formation though cellar dweller Monthly, appears to be assisting the double top in luring EUR/USD lower. Price Action has closed below the only substantial Support above 1.2908 so there’s certainly room for further pullback and if we have a close below yesterday’s low – that appears to be next target.
The Day Ahead
Whilst I’m NOT convinced Price Action is yet ready to freefall, I can certainly see further downside and that is where my sentiment lies today – JUST. The very slow pace of this move to the South tells me there’s not a lot of conviction behind it and that leaves me absolutely open to the Bulls springing back into action. I am relying heavily on my Hotspots to deliver me from a pretty mixed bag. With some substantial news out today, it could be an interesting ride.
High Impact News
|9:30am||EUR||German Flash Manufacturing PMI|
|Tentative||EUR||Spanish 10-y Bond Auction|
|4:00pm||USD||Philly Fed Manufacturing Index|
Geoff Pyne | Certified SurfingThePips.com Trader