Price Action found 1.3700 an irresistible target on Friday, in a tiny 45 pip range. EUR/USD was in need of a rest after Thursday’s 165 pip Skyrocket took off but there remained enough energy to traverse the small journey to the psychological level. The very low level of activity was totally understandable as the landmark week came to an end.
We begin the week with EUR/USD hovering above an untested Daily Pivot (DP), a mere 30 pips from the 1.3710 level, which has been tested once, since November 14th, 2011. Pivots and trend are clearly Bullish but is the cross ready to trade above 1.3700? Certainly it’s a Daily Critical Zone level and should offer sufficient resistance to repel PA, at least short term. The test of DP looks attractive BUT Shorting EURO at the moment isn’t something I’ll do lightly as the Greenback appears out of favour.
The Day Ahead
Really expecting pullback but will like to see a reversal sign before entering Short. Maybe a cheeky small stake to DP, on the back of M30 lower hi’s & lo’s. It’s Monday of course with the re-scheduled NFP announcement tomorrow – could be quiet again.
High Impact News
|4:00pm||USD||Existing Home Sales|
Magic Monday everyone.