G’day Surfers – bye bye EURO!
What a way to start the week! One step forward & two steps back for EURO yesterday – that’s 100 pips up, then KABOOM, 200 down as the market had it’s say on the Cyprus debacle. We were given an invitation to join the selloff and accepted, placing the Short Order in compliance with our Secret Surfing The Pips Candle Pattern. A second signal arrived two hours later (prior to the crash) for a Long Entry. That order was never in danger of being triggered as Euro began to plummet, shortly thereafter. Those who “cheated” the four candle rule (join our Free Webinar today for explanation) got to enjoy the ride down the waterfall. Officially – no entry.
Though definitely looking for some selling early on yesterday, I certainly didn’t see the crash coming – such is the volatility fundamentally. Certainly the Inverted Head & Shoulders that I thought might dominate yesterday, has now been violated. So, what we now have is a new Daily Low and EUR/USD once again, no immediate Technical Support AND Daily Pivot has now crossed back to the South of Weekly, re-affirming a Bearish trend. Countering that to some degree is an imperfect Double Bottom #1 and Ascending Triangle #2 on intraday charts AND Daily Pivot is yet to be tested. On balance I am Short Term Bullish (until DP is tested) and thereafter Bearish.
The Day Ahead
Apart from conflicting directional signals, I have a lack of Hotspots today. I’m not a huge fan of my only Support Trendline #3 so the Ascending Triangle #2 commands centre stage as we begin the day. I will look for a Counter Trend “cheeky” trade to DP early on and leave myself in Price Action’s hands waiting for other Hotspots to be formed or tested. Very mindful that Fundamentals are at work, ALL trades will be small stake again.
High impact News
|1:30pm||USD||Core Durable Goods Orders m/m|
|3:00pm||USD||CB Consumer Confidence|
|USD||New Home Sales|
Trust Tuesday is Tumultuous Trading.