We had to wait for our reward but it came – well into US Session as EUR/USD exploded. Outside of a news event, this was the BEST move on the cross I have seen in many a day and straight out of the STP trading manual. As observed yesterday, those still in Short positions needed to take some risk off. As Europe gets ready to return to work next week, I’m seeing signs of life and yesterday was a nice profitable way to say goodbye to Summer.
The Gap that opened last weekend remains that way and of course the Trend is still extremely Bearish. A test of DP would commence the construction of an inverted Right Shoulder however and perhaps signal a REAL reversal. My crystal ball has that rough image at it’s core so I’ll be keeping my eye on that scenario. The seventh successive week of Selling is still very much in play but I’m slightly favouring the counter trend Long.
The Day Ahead
I’m keen to see DP tested and act as a springboard for the Bulls, whose attention should have been gained by now.
High Impact News – CET
|4:00pm||USD||Pending Home Sales m/m|
Have a great Thursday.
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