EUR/USD found Support @ the 1.3400 psychological level on Thursday, after Wednesday’s “guillotine” cut a swathe through the cross. Price Action bounced nicely and the rally continued throughout Friday, closing the week mid 1.35’s, some 57 pips better, than when the day began.
The new week begins testing the bottom side of the now broken Flag, which began the sell off on Wednesday. An untested Daily Pivot failed to recover sufficiently to remain above Weekly (though very close) and with Monthly above the pair, the Pivots are Bearish. A break back above the Flag’s bottom should confirm the resumption of the near three week old Bullish trend however. Clearly the Bearish Trend is confirmed if Support becomes Resistance. One could call it a Pivotal day!
The Day Ahead
Daily Pivot Test is the early focus but I’ll be looking for a potential Long Entry if the former Support Trendline doesn’t survive the test from below.
High Impact News
|4:00pm||USD||Pending Home Sales m/m|
May your Monday be Magical.