G’day Surfers – the Channel is broken.

Yesterday’s Report

One thing we can say with certainty about yesterday is that we were warned. The Bearish continuation Flag that has been steadily building for 3 weeks, finally gave way to downward pressure and landed ever so nicely on our 1.2645 DCZ. We were prepared to go with it, even without a DP test and indeed were given a not quite tradeable hint, prior to the fall. There were no second chances so we simply wait for the next wave.

Technical Analysis

 

The Pivots are now aligned and pointing South with DP again untested above, as we join the day’s activities. PA has gone into consolidation on our DCZ and together with DP, looks to be the centre of attention at least for now. Our first hour of trading will be stifled by news so a late start might see a few things change. It’s tough to see EUR/USD holding on, now the selling has recommenced so I remain Bearish and await a clear invitation to the party.