Welcome back Surfers!

New Year, same habits.

Before we start to trade let’s concentrate for some minutes on the technical situation of this EURUSD.

Well there’s no doubt, the trend is bearish. Really bearish.

Chart on H4 is just a very clear bearish channel and an infinite list of lower lows and lower highs. Last week and during last Asia session we had an accelleration of this trend.

Daily Pivot has not been tested for 3 days in a row and today is probably a day dedicated to some “rest” for the beast.

There is no need to speak about the fundamental (news) scenario. It’s always about the Europe and the diffence between… Germany and the others.

The only new news (ehm…sorry) is the Hungary situation and the many western banks involved.

Ok that’s it, we dont need to go further on that, don’t forget we are technicals!

What I see today is just a cross clearly oversold. We are not top and bottom catcher, we always need some confirmation and we always need to follow our 7 Holy Steps.

There’s no need to change the receipt, after all, we come from a positive year with just a single negative week … on the last one!

What to do today?

Not too much now. I personally don’t have lines to play with. I don’t play situation like that, I see price is oversold but I’m not interested in catching historical bottoms.

I prefer to see some reversal pattern at least on a M30 chart before even thinking to go long.

Of course I can’t go short with 3 days in a row with D-P not tested.

So… I wait in patience. I have an entire year in front of me!

Have a great year Surfers

Davide | Chief Trader