The counter trend DP test was a consideration yesterday but we were denied the opportunity to trade it, when it setup nicely – AT NEWS TIME. The news was enough to take EUR/USD back above 1.2400 but PA fell just short of testing DP on a day where the only acceleration (if you could call it that) was the News. Significantly however, the now broken Flag was re-tested nicely.
Significant Charts (H4 and above) are displaying the most significant sign of potential reversal since EUR/USD fell over the cliff in April. A Big Double Bottom has formed and 1.2400 is currently defying gravity. Pivots remain Bearish however and the cross is at an interesting stage. Again, 1.2400 AND the broken Flag hold the key I believe. If the Flag break proves to be false, I’ll be thinking reversal but if 1.2400 goes, so does the EURO.
The Day Ahead
I’m quite torn between the reversal potential and the Flag re-test. My preference is to wait until PA declares its hand. I’ll go with the Pivots first up and see what the day brings – Short.
High Impact News – CET
|4:00pm||USD||CB Consumer Confidence|
Terrific Tuesday everyone.