Just when it appeared the bears would resume their charge South, EUR/USD dug it’s toes in, refusing to slide further, despite the continuation Flag breaking earlier in the week. Indeed at one stage PA looked intent on re-testing the broken Trendline. Late selling tempered the rally and the day closed 20 pips to the good at a week ending 1.2665, some 175 pips lower than when the week began.
Pivots are aligned in perfect Bearish formation, DP lies untested below PA which has rejected an open gap and is struggling to break the Resistance being currently offered by WP and DR-1. Whilst that set of circumstances paints a very Bearish picture, we are beginning to see higher hi’s and lo’s on intraday charts – but hang on – isn’t that another Bearish Flag I’m seeing form?
The Day Ahead
I’m struggling to warm to the Bulls cause and am once again looking for an opportunity to trade Short to and beyond DP.
High Impact News – CET.
|10:00am||EUR||German Ifo Business Climate|
May your Monday be Magic.