Happy New Week Surfers – hope your weekend was a beauty. Whilst we let the market fend for itself on Friday, there was some see sawing going on. First a 90 pip rally, then a 70 pip pullback, 60 pip rally, 30 pip pullback to leave us in lateral consolidation around the 1.3260 level of our MP. It is from this point that our trading week begins………..
Most notable on our charts today is the close proximity of our pivots. DP & WP are as one, lingering a mere 30 pips below MP. Certainly they are gathering forces, just below our much tested strong level of resistance @ 1.3285. This will clearly be the focal point once again today, as the bulls perhaps try one more time to breakthrough. I feel they might want to test the combined magnetism of DP/WP prior to launch however so I’m expecting price action to continue consolidating around the pivots for some time yet. Business Climate Survey news coming in the next few minutes may change everything however.
Finding an entry today might be difficult. I don’t have much in the way of good lines to play with. The resistance trendline is not bad but entry long here would be very risky with the super strong resistance level dead ahead. The line could perhaps be useful for a short, depending on whether or not pivots are tested by the time price action gets to the line or if a false breakout of 1.3285 has occurred. I can’t see it being useful as an ABC long because if they break 1.3285, it will be like a rocket, I believe. As I write this, they are approaching the support trendline, so we are about to find out how good a line it is.
Only question for me today is “are they ready to break 1.3285?’. If they are, it might come after a false breakout of support trendline, testing the DP/WP. Should that occur, I’ll be waiting to spot one of our favourite setups to take the long.
Happy trading everyone.
Geoff |Certified SurfingThePips.com Trader
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