EUR/USD spent a brief period above our Daily Critical Zone (DCZ) of 1.3700 on Friday, before the psychological level regained its Resistance authority. The “hour of power” was the ONLY movement on an otherwise ‘Fruitless Friday’.
An untested Daily Pivot has huddled slightly above Weekly, the pair beckoning, below Price Action as we begin the final week of January. This confirms a Mixed scenario, with Monthly hovering to the North. Thursday’s 170 pip rally looks to have stung the market and consolidation is well underway. Our DCZ appears the Key level today and my bias is Short, based on the Resistance it provides coupled with the untested DP below.
The Day Ahead
Plan A is to look for a Short to DP. Not expecting lots of action on “Meandering Monday” (though there’s a bit of News about) – let’s hope there’s enough to get us our rewards.
High Impact News
|German Ifo Business Climate
|New Home Sales
Magic Monday all.