The market was intolerant of EUR/USD residing above 1.2800 on Friday and the resulting 50 odd pip sell off saw the week close under the ‘roof’ of 1.2775 DCZ, at 1.2755. That correction took a little of the gloss off an otherwise fairly positive week and seemed to add fuel to the ‘this is only retracement’ argument.

If the retracement argument is accurate, the 1.2775 DCZ looks an ideal place from which to launch a Bearish resumption so let’s stay alert here. Pivots are mixed and extremely compressed, suggesting consolidation so perhaps we are in for a little ping pong between DCZ’s 1.2775 and 1.2645? This contributes to my Bearish sentiment.

The Day Ahead

 

Plan A is to catch a Short if an opportunity presents.

Not today.