How cruel the market can be! I’ve been targeting ( http://clip2net.com/s/73bID6 ) the 1.3815/Long term Trendline re-test all week and yesterday…….target hit and how! Only problem…..no entry signal. To be fair, EUR/USD fell like a rock as the result of the Fed’s economic outlook statement but where did the sell off end? You got it, square in the middle of our target! For the record, we saw two opportunities to trade the run up Long – #1 closed at Break Even (as did our S&R EUR/JPY Long) and #2 expired.
The question now is: does the confluence hold as Support and send EUR/USD back into trending Long OR, have we just witnessed the point of reversal? I’m a fan of the former and am keen to ride the cross to 1.4000. An untested DP has crossed WP to the South, creating mixed pivots but it’s position above PA suggests there’s at least some buying ahead today.Of course should PA find comfort below 1.3815, my bias could change.
The Day Ahead
Looking Long but Hotspots are scarce – PA will have to provide them so patience required.
High Impact News – CET
|3:00pm||USD||Existing Home Sales|
|USD||Philly Fed Manufacturing Index|
Have a good one.