Happy New Week Surfers.
Must say I was expecting some substantial movement on the back of the Ecosummit but it’s almost a case of “what Ecosummit?” if market reaction is anything to go by. I guess you could say that EUR/USD was @ 1.3128 prior to the Summit & 90 pips lower after it wrapped up but not quite what I expected. I guess I’ll get over it!!
You’ll recall we have been asking Price Action to pullback from the Highs of last week, in order for EUR/USD to come back into equilibrium. Our Pivots were telling us the market was overbought. Our demands have been met and we begin the week with EUR/USD breaking both Daily Pivot and the continuation Flag that has formed on our charts. Our Pivots are in perfect Bullish formation & well balanced. Having formed a nice intraday base on Weekly Pivot, Price Action does look set to “attack the wagon train” (see Friday’s DB) beyond 1.3115 again. We have to be a little “creative” to find a Hotspot that we might catch that move today but nonetheless have found a couple of contenders. It’s now over to Price Action to come play with us.
The Day Ahead
I’m definitely a Long fan today but as I write this, Price Action is very keen to get off the tarmac, prior to me boarding. If someone could hold the flight – it would be much appreciated. We need to consider that EUR/USD has already moved 50 pips today and of late – it doesn’t tend to be keen to wander much farther – especially on Mondays.
High Impact News
Nothing of concern.
Have a great week.
Davide Franceschini | Chief Trader and Founder at SurfingThePips.com