Happy New Week Surfers
EUR/USD hit the afterburners on Friday, launching itself into the “Blue Sky” we flagged last week. After a predictable struggle breaking through “the atmosphere” of 1.2908, acceleration Northward continued toward the psychological 1.3000, falling just short of that number, at week’s end. It being Friday, we protected our gains of the shortened week and as usual, didn’t trade.
Price Action last week did a good job of closing the Pivot Gaps, with the three amigos now in close proximity. That they are NOT in either Bullish OR Bearish formation is good counsel for us today I believe. Despite the undoubted Bullish nature of the past week (or perhaps because of it) EUR/USD could do with a wing clip. Daily Pivot has been largely ignored for the past two trading days and is therefore Priority One for me today and I WILL NOT be considering further Long positions until DP is paid a visit. That aside, it’s hard to make a case for the Bears as 1.3000 should prove too tempting a target, once some pullback has been achieved. Indeed I don’t see the potential turning point for this rally prior 1.3020/1.3033 with 1.3080 not an unreasonable extension.
The Day Ahead
Very simple formula for me today: Await Price Action to test Daily Pivot – then look for Long entries at one of my Hotspots. To Short EUR/USD currently, I would need to see a definite reversal pattern and I DON’T.
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