Happy New Week Surfers.
EUR/USD continued it’s fascination with the artful pursuit of yo-yoing throughout Friday. Firstly it rallied off Thursday,s 1.2918 low to again test our 1.3033 S/R level, performed the Classic yo-yo “Gravity Trick” down 80 pips, up 80 – then fell 75 to land on Daily Pivot, where it finished the week @ 1.2985. It being Friday, we were engaged in other pursuits.
Friday also saw Daily Pivot cross Weekly to the Southside giving us a completely blurred technical image. With Monthly still 535 pips further South, there’s evidence to support further downside but only on very small timeframes would you consider the trend to be Bearish. The incredible momentum behind the Bull run was ALWAYS going to produce some pullback, question is how much? The hint of a base is forming just above our strong Support level of 1.29088 so this might be the key level of the day – a break here may lead to further falls but mored failed tests from above, could send EURO into rally mode again.
The Day Ahead
I confess to having few clues as to my bias today except my old friend Daily Pivot. 50 pips above Price Action and untested, he looks in need of company. To take advantage of this need, I can rely only on a false breakout of the not so reliable Support Trendline OR, Price Action producing an intraday Resistance Trendline for me to play.
High Impact News
|10:00am||EUR||German Ifo Business Climate|
Have a good one
Geoff Pyne | Certified SurfingThePips.com Trader