G’day Surfers – are those Bull Candles I see??
As Londoners paused to honour their Monarch (as they will again today), expected poor liquidity during morning trade gave way to a 70 plus pip rally in EURO, lifting the currency 225 pips above Friday’s pre-NFP low of 1.2286. That’s a fairly healthy bounce off the 2008 Global Financial Crisis Level and certainly what the market has been waiting to see. The market went straight into consolidation post the move, leaving us with the question of sustainability.
Outside the bespoke 2008 low, I see no Technicals to suggest that this rally is a reversal of the Bearish trend. Indeed quite ironically, so steep has been the nature of the rally, we still don’t have higher lows on other than smaller timeframes. It is therefore very difficult to analyse this move because it has created no contact points for our trendlines.The market is still under fundamental pressures which seem to compound, rather than ease. Therefore the big picture is still very much Bearish, given Price Action remains in a long term, strong Bearish Channel with precious little support. Asia Session today initially extended the rally but late trading has pulled those gains back
The Day Ahead
Apparently G7 & “significant others” are planning a phone “Crisis Meeting” today – that will keep us on alert throughout NY Session as we once again take the morning off due to no London Trading. Price Action has produced an unorthodox support trendline that is interesting, as is the Beta Resistance Trendline forming. Daily Pivot is untested today and unusually of late, below Price Action. I will be looking for that to be rectified and would like to see a Secret Surfing The Pips setup on the Beta line to trade it there but the real Hotspot is the convergence of the established former Resistance Trendline with the unorthodox Support.
Geoff Pyne | Certified SurfingThePips.com Trader
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