G’day Surfers – near miss as Bullish move delayed.
EUR/USD was technically perfect yesterday but managed to avoid our invitations to play – by whisker. You’ll recall I was waiting to play a Long to Daily Pivot and it quickly became clear that the best setup was going to be a false breakout of our Support Trendline. Price Action obediently broke the line but refused to re-enter & close above it. We spotted a risky opportunity to sneak the Long trade in despite this and Price action steamed toward our entry but failed by less than a pip, to trigger the entry of 1.2937. Some brokers took a couple of traders (one with initials GP) into the Long but they lost their 17pips when Price Action decided further pullback was required before continuing the rally. We spotted a second opportunity to catch the run to DP but Price Action again refused our invitation. The right setup came eventually (12 hrs later) but I’m hoping we were all otherwise occupied at that stage. So, on a day that promised so much, yet delivered so little we officially had no entry.
Daily Chart clearly displays a beautiful symmetry created by the reversal on Nov 13th. The pullback to and rejection of 1.2879 replicates perfectly, the Bearish side of the “BIG V”. If we consider that to be a sign of things to come – EUR/USD could well find itself challenging 1.3080, come week’s end. Price Action has once again cleverly side-stepped Daily Pivot which once again, is untested and STILL in the middle of Weekly & Monthly, so directionless. Somewhat ironically, the Support Trendline that refused to allow PA above it yesterday, is currently doing precisely the opposite and is holding Price Action & Daily Pivot apart. My sentiment is still Bullish though I recognise DP is in need of a test so a pullback to there would suit admirably, prior to a Long entry.
The Day Ahead
Well it would appear the Jury’s still out on the Big question of yesterday: “Pullback or Plummet”. Apart from mixed Pivots, I can absolutely see EUR/USD re-testing 1.3000 and the highs of this week & month. I am happy to trade to Short to DP if the opportunity presents but Plan A will be Long. As is often the case of late, reliable Trendlines are again hard to find. My tiny Intraday Trendlines are displaying traits of trustworthiness so they are our Hotspots of the day.
High Impact News
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