G’day Surfers – they did it again!
An idot is defined as someone who continually does the same thing, expecting a different result – can someone call the men in white coats!! You see I actually believed the technical bullish evidence was enough to drive EURO to test some resistance – what a fool I must be! No sooner did London open, than EURO began its daily ritual of crashing at least 90 odd pips. That the buyers then stepped in and restored equilibrium very quickly is encouraging BUT again no test of resistance. We placed an early Buy order that got as close to triggering as I will of beating Usain in a couple of weeks. It’s as well that our strategy let’s us get it wrong for FREE!! I must congratulate Federico & Alan from the STP Dream Team whose analysis got it right – well done guys.
The temptation to copy & paste yesterday’s analysis is strong and again it’s significant that the 90 pip drop yesterday failed to take out the previous day’s low. In the wash up, we have essentially had two days of consolidation, since the potential rally hit a snag @ 1.2316, on Monday. The nature of the consolidation has been a little unusual for mine, with sudden crashes, followed by strong recovering rallies that just can’t reach the next level. If that trend continues, it’s bye bye EURO coming up. The glass half full component of my analysis is concentrating on the strong triple base underneath this cross and the higher lows that continue. The raw analysis however sees EURO poised precariously on a jagged rock precipice with solid ground tauntingly within sight in the form of an eleven year old trendline converging with a similar vintage S/R level. If it manages to struggle it’s way above that level, there’s a rest stop waiting. I think closing time is not that far away however!!
The Day Ahead
My sentiment short term hasn’t changed as I believe the bespoke rest stop is too big a refuge not to attract Price Action. We’ll deal with if it is open for business, if & when EURO can muster the strength to get there. Therefore, I will rely on the untested Daily Pivot to act as an Aircraft Carrier sling to slow the expected fall, so our Support Trendline can catch Price Action and catapult EURO airborne to break our Resistance Trendline and set sail for the convergence area above.
Oh – Gadget Legs? – Check the Daily Chart.
Have a good one.
Geoff Pyne | Certified SurfingThePips.com Trader
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