Price Action used our analysis tools to perfection yesterday firstly with a to the pip bounce off Weekly Pivot and then a slingshot off our much relied upon Critical Level of 1.2482. Even better, it produced a Surfing The Pips Secret Candle Pattern that allowed us into the market acrest a beautifully formed wave to the bank. Our official trade scored TP1 of +6 & a “ride of the day” TP2 of +24 for a solid total of 30 pips. Those trading a third TP did very well, in fact some are still surfing. The 110 pip bounce off Weekly Pivot failed to take out last week’s seven week high, but Price Action put a good shot over the bow.
Our Pivots have consolidated in Bullish formation as this promising EUR/USD rally gains momentum – amazing what a lack of bad news can do for a currency! The question of sustainability is of course ever present in this world of uncertainty. Price Action is now drifting between two of our major S/R levels just a little over 20 pips shy of the bespoke high @ 1.2588. Whilst I expect an assault on that number today, I also am cognisant of the untested Daily Pivot, a similar distance Southward. So it’s a clear choice right? – Daily Pivot OR 7 week High? Mmmm….. with Price Action so close now to the top of our Bearish Channel (D1), it would be a shame if it didn’t drop in for a visit, whilst in the neighbourhood. So with a bias towards being neighbourly, the presence of a nice continuation flag on intraday timeframes and it’s new found liberation, I’m not so sure Daily Pivot will get a look in today!! The StP Strategy never changes it’s rules however so Daily Pivot is my first consideration. Although in a beautiful position to find a Long entry, if one presents, it will be small stake, until Daily Pivot dances with Price Action.
The Day Ahead
It’s very difficult NOT to be Bullish & certainly, my sentiment is for the Longs. My strategy tells me to be patient and wait for the pullback to Daily Pivot PRIOR to entry. For this reason, I favour a move South, prior to Price Action again testing 1.2588 and beyond. With Hotspots right ontop of Price Action, it might be a little tricky trading it though – we’ll do our best.
High Impact News
|2:30pm||USD||Prelim GDP q/q|
|4:00pm||USD||Pending Home Sales m/m|
Enjoy your day everyone