Happy New Week Surfers. Well, it’s Tuesday but Easter Monday is a no trading day for us due to Bank Holidays everywhere. I notice there was a 100 pip range yesterday but no direction, with the day’s trading ending as a doji – no surprises there. The Euro is hanging on by the skin of its teeth, bouncing once again off our major support level of 1.3029 (Daily Critical Zone), an area it has visited many times this year. This is very much a key level so the reluctance of the market to fall below here is significant, yet continues to be tested.
The big picture then, is still a mixture for me. Despite the big falls of last week, the market has still not broken the February low of 1.2970. This of course, just below the strong support I mentioned is also a level that if broken, will send the Euro into freefall. Of course the “glass half full” people (me included) are awaiting a big bounce off the major support but as yet, holiday trading is not providing any momentum. The re-test from below, of the support trendline which started in January, will be key to a Euro recovery, or rejection and therefore is a real area of interest today.
Our pivots are in clear bearish order with DP untested. I see two hotspots, both on Intraday trendlines. Clearly it’s difficult to go long against this trend but I’m a little bullish in sentiment. As usual, I’ll let price action guide me, when it comes to my hotspots.
Have a great day.
Geoff Pyne | Certified SurfingThePips.com Trader