G’day Surfers – market refuses to “dance” with StP.
EUR/USD again refused our invitation to rebound yesterday and went about shedding a further 90 pips. We were happy to go with the momentum building fall but not a single opportunity to go Short, arose. The only entry signal we received was an early Long setup which timed out and remains high above Price Action (PA).
PA has reached the next Daily Critical Zone at the ever popular 1.3030 level, just above an already tested Daily Pivot (DP) which has almost joined Monthly, sitting on the psychological 1.3000 level. So a pretty strong Support Level for the cross which seems intent on seeking lower levels as it continues to create lower Hi’s & Lo’s on Intraday time frames. Daily Chart suggests that the Bulls haven’t lost control just yet, with the potential “trend changing” Support area #1 looming as a potential target by week’s end. At 185 pips, the Weekly/Daily Pivot gap is suggesting some pullback may not be far away however.
The Day Ahead
Can’t ignore the Southerly momentum so Shorts are favoured today but the strong Support and increasing Oversold evidence should not be ignored – proceed with caution.
High Impact News
|4:00pm||USD||Pending Home Sales m/m|
Have a great Thursday.