Happy New Week Surfers – The 3 Black Sisters pointing South.
Friday saw a continuation of the EUR/USD slippery dip, making the latter half of the week a 300 pip sell off. That action completed a 50% retracement from the rally that began a month prior AND made more emphatic, the bounce off our 1.3450 Daily Critical Zone (DCZ). As usual, we were doing our Friday no trading pre-weekend routine.
The Daily Chart is dominated by three consecutive decisive Bearish Candles off Resistance – not an encouraging sign if you’re on the Bull’s Team. Daily Pivot has crossed Weekly to the South, providing us with a Mixed scenario, given Monthly lies further below. Our 1.3115 DCZ provided Support on Friday but is under attack once more. With Daily Pivot untested, I favour that to change but after that ?????
The Day Ahead
It’s this battle that should prove crucial today. If the DCZ holds, the Bulls may look to regain control – if not, the Three Black Sisters will have their way and EUR/USD could well be on its way back to 1.3030. I’m giving the Bulls my support today – they might need it!
High Impact News (C.E.T.)
|10:00am||EUR||German Ifo Business Climate|
Have a great Monday & week everyone.