The Bearish continuation Flag we were trying to take advantage of last week, finally broke on Friday, crashing EUR/USD below 1.2400 for the second time this month but only the third, since 2010. The 193 pip move was a big statement and puts the cross back under enormous pressure.
As PA re-tests 1.2400, it is certainly the key level of the day. Should it hold as Resistance, EUR/USD could be on the slippery slide again. The November Low of 1.2357 is the obvious Support area and its in this tight range, where a battle may exist. PA An untested DP has crossed WP to the South, placing the Pivots in Bearish formation once again. That said, DP and WP are in close quarters, beckoning PA North. It’s a particularly interesting recipe and 1.2400 is the main ingredient.
The Day Ahead
I can’t imagine trading Long below 1.2400 but Short against the untested DP/WP combo isn’t appealing either. I’ll see how the ingredients combine before placing the ‘mixture in the oven’.
High Impact News – CET
|10:00am||EUR||German Ifo Business Climate|
May your Monday be Magical