Without a clear direction Yesterday, we needed to rely on AAA setups rather than guess which way the consolidation would break. The setup we received at our Hotspot was for a break Short. Clearly the Support we mentioned held and Price Action took off in the opposite direction. The inbuilt safety of our entry strategy prevented us from being taken into the Short – so no harm done. The Bullish move tested perfectly, our Bearish Channel (Flag) #1 and Price Action has ridden the Resistance Trendline #2 since.

Now our broken Resistance Trendline #3 has proven itself as Support, I believe the Bulls might be looking to regain ascendancy. Though I’m almost certain it will break prior to London Session – a very clear Pennant #5 has formed precisely in the middle of Daily & Weekly Pivots. With Daily untested, I would favour that Break to be Short but also, short lived given the opportunity the Bulls will see here. The Pivots are still mixed however so we must listen to them and not allow sentiment to over ride reality. Our Daily Critical Zone #4 at 1.3450 is the crucial level today as Price Action struggles to determine whether it’s Support or Resistance

I’m not a huge fan of London session opening with Price Action right on top of my Hotspots but that is our lot today. When it occurs, I am usually looking for a false breakout and then trading the second test of the level. That scenario today, is for a break Short, testing Daily Pivot which I’m hoping will create nice Support and send Price Action back to my Hotspot & beyond – that’s Plan A.

1:30am

EUR

ECB President Draghi Speaks

Winning Wednesdays are Wonderful – have one!

Without a clear direction Yesterday, we needed to rely on AAA setups rather than guess which way the consolidation would break. The setup we received at our Hotspot was for a break Short. Clearly the Support we mentioned held and Price Action took off in the opposite direction. The inbuilt safety of our entry strategy prevented us from being taken into the Short – so no harm done. The Bullish move tested perfectly, our Bearish Channel (Flag) #1 and Price Action has ridden the Resistance Trendline #2 since.

Now our broken Resistance Trendline #3 has proven itself as Support, I believe the Bulls might be looking to regain ascendancy. Though I’m almost certain it will break prior to London Session – a very clear Pennant #5 has formed precisely in the middle of Daily & Weekly Pivots. With Daily untested, I would favour that Break to be Short but also, short lived given the opportunity the Bulls will see here. The Pivots are still mixed however so we must listen to them and not allow sentiment to over ride reality. Our Daily Critical Zone #4 at 1.3450 is the crucial level today as Price Action struggles to determine whether it’s Support or Resistance

I’m not a huge fan of London session opening with Price Action right on top of my Hotspots but that is our lot today. When it occurs, I am usually looking for a false breakout and then trading the second test of the level. That scenario today, is for a break Short, testing Daily Pivot which I’m hoping will create nice Support and send Price Action back to my Hotspot & beyond – that’s Plan A.

1:30am

EUR

ECB President Draghi Speaks

Winning Wednesdays are Wonderful – have one!