Happy New Week Surfers – NFP week at that.
It’s been a while but last week we discovered the Bulls haven’t forgotten how to compete and they managed to wrestle 260 pips back from the Bears, despite conceding almost 100 pips, late in Friday’s NY Session. Price Action challenged the combined resistance of long term trend line and the much tested 1.2334 level and for some time had their measure, eventually retreating to end the session and week, just below 1.2300.
The test of our trend line came a week after expected but you would have to say the drive towards this significant resistance level was Citius, Altius, Fortius than was anticipated. Predictably, the market back-pedalled to take up a strategic position between the chasing Peloton of Daily/Weekly Pivot and the breakaway level above 1.2334. I do suspect that could be the familiar order of the day as the market consolidates in anticipation of a final sprint towards the Gold Medal of news; NFP on Friday. Daily & Weekly Pivots are once again close together, adding to the potential reluctance of Price Action to break from the pack today but our long term trend line may prove tempting. Trend lines are a bit of an issue with the only support lines a little sharp for my liking.
The Day Ahead
I’m a little keen on another run at the bespoke high jumps directly to Price Action’s North but do believe the Springboard of Daily Pivot will be utilised as the starting blocks. We remain very much on the Balance beam and in the back of my mind is that precious little, other than more words have instigated this rally. Without sufficient backup, the Diving Pool awaits. Proceed with caution!
Keep on cheering.
Geoff Pyne | Certified SurfingThePips.com Trader
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