Happy New Week Surfers – well the Eurozone Family remains intact. Now………can they get themselves out of trouble?
With all eyes focused on the Greek elections, we managed on Thursday, to find a very nice entry long using our Swing & Relax Strategy. The trade unfolded quite slowly and was open right through Friday, up to market close. We closed the trade before that because we don’t like to keep positions open over the weekend. Some brokers had different closing times to others and TP2 was achieved, for those who chose to leave the trade open until close of market. Our official trade closed TP1 @ +15 & TP2 @ +46, giving us a nice 61 pip total to take us blissfully into the weekend.
Much like many Mondays before it, this one began with a gap in the market – no mystery as to why and much like those same Mondays, the gap has partially closed. Much like LAST Monday, we have a healthy gap between price action and an untested Daily Pivot. Unlike ALL of those Mondays, a vote for Eurozone stability was cast the day before. I feel this could dominate today’s market more than anything I’m seeing technically but rather than pack the tent and head for home, I will hang around a while and see what the day brings. Our pivots are quite snug today, yet mixed in nature, reflecting uncertain reactions to the Greek result. The first two H4 candles of the day are confirming exactly that. Price Action is approaching DR-2 and this combined with an untested Daily Pivot some 100 pips below, tells me that rare commodity of late (overbought EURO) has been placed on our plates.
The Day Ahead
The above scenario dictates a no long, no short approach right now. The unloved Daily Pivot and Price Action almost at DR-2 prevent me going long and the continuing sequence of higher highs & lows (bullish trend) prevents me entering short. Add to that, the lack of trendlines on offer and you probably get the picture. Price Action may well provide some lines to play with but there needs to appear a lower low, before I can enter short OR a pullback to test Daily Pivot, before I enter long.
Have a great day
Geoff Pyne | Certified SurfingThePips.com Trader
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