Happy New Week Surfers – here we go again – familiar territory!!
The rise & fall of EUR/USD was how you’d best describe Friday’s trading. Price Action tested our 1.3115 Daily Critical Zone (DCZ) before immediately retreating back to Daily Pivot (DP), finishing the day less than 10 pips from it’s start and the week a mere 55 pips, from it’s start. Not too many pips available in that lot.
So it’s in a very familiar part of the chart that we begin this week and to my mind, a quite choppy and messy chart at that. We have the suggestion of Head & Shoulders #1 on Weekly, Daily & Intraday charts but nothing is clean and the necklines are poor. The Bearish continuation Flag #2 I mentioned on Friday is now as big as the “flag pole” (the preceding movement) and our Pivots are mixed!Price Action is edging towards DCZ 1.3030 but seems to be perfectly happy adjacent to DP. I really need to see some movement before being convinced of a direction today.
The Day Ahead
I’m not convinced, given the imperfections in the patterns but on their evidence, it’s difficult not to be Bearish. As usual, I’ll await an entry signal at a Hotspot.
High Impact News
4.00 p.m. CET
|USD||Existing Home Sales|
Hope the week sees EUR/USD exit this very stale range – enjoy it.