G’day Surfers, it’s choppy but tradeable.
We needed to stay on our toes but we tip-toed away with the pips yesterday as Price Action led a merry dance along our Resistance Trendline before breaking North, taking us with it to a new high. Our sentiment was Bullish and we spotted a nice re-test of our Trendline which gave us our first Buy order but it was then that the “line dance” began and our entry point was ignored. An imperfect setup which would have accommodated the re-test of Daily Pivot to the South saw us place a small “insurance” order Short. Again no entry before an obvious pirouette signal changed our order from Short to Long. For a third time, Price Action preferred to flirt with our Trendline than accelerate through our entry point. On the last M30 candle prior to our order cancellation – the dance burst clear of the Trendline and through our entry. Instead of a quick-step, we were forced to endure a slow waltz before taking our profits but our patience ensured we got our pips.
Price Action has gone from dancing to yo-yoing since but continues to make higher highs & lows on both Daily & H4 Charts. (This can of course be seen as a bearish continuation Flag). H1 & M30 charts are a little less convincing of a bullish continuation, displaying a couple of lower highs but higher lows. Pivots are mixed and not really providing much guidance currently and Daily Pivot has been tested and re-tested. The malformed inverted H/S we spoke of yesterday is the main contributor to my still Bullish sentiment therefore and I can definitely see 1.2874 as a target for the Bulls today. I would need to see Price Action below 1.2763 before being confident about a short entry but certainly not ruling it out as the hint of a double top yesterday stays under my notice.
The Day Ahead
Plan A will be to play a continuation of the Bull run off my Resistance Trendline as either a direct break or as a re-test after the break, depending on what the market gives me. Plan B will either be a Long or Short off the once violated Support Trendline but I would need the bespoke lower low to appear before I’m a short fan. Eurogroup Meetings today might add a little zing to proceedings.
High Impact News