Welcome to our first trading day of the week.
Our identified major support level @1.2511 pulled the week to a grinding halt on Friday, following a ride on the rollercoaster. With Bank Holidays in the USA, Germany & France yesterday, it was the duty of the rest of the World’s traders to close the latest gap, created mainly by good (mmmm – not bad) news out of Greece over the weekend. After a 50 pip rally during Asia, they dutifully traded the EURO down 100 pips to all but close the gap. Not surprisingly, liquidity dried up like a prune in the midday sun as the Americans honoured their fallen.
The Big Boys are yet to show their hand this week and we join the action with Price consolidating in the vicinity of the as yet untested Daily Pivot. Our pivots are dutifully in Bearish formation with Monthly Pivot enjoying it’s final few days as a cloud, levitating high above the market, some 660 pips away. This factor, suggesting an oversold Euro is still a relevant consideration, one that’s supported by the two open gaps to the North. That said, Price Action is now entrenched below a long term Bullish Trendline which has been tested & proven as resistance. EURO floats as a leaf in a raging Bearish torrent and appears without lifelines, at the mercy of the flow. In a somewhat twisted irony, it has now found some support at the 2008 first wave bottom created by the GFC – around 1.25!!
The Day Ahead
Fortunately, I have two intraday trendlines to play with because I have little by way of sentiment. Torn between the obvious pressure EURO is under and its still oversold nature, I am quite prepared fro Price action to present at either of my Hotspots and deliver an invitation to enter in either direction, via a Surfing The Pips Secret Candle Pattern. We are in NFP week and with ECB Meeting next week – we could see a prolonged consolidation around this current level. As always, predicting is the realm of others – trading is ours and if the market comes to play – so will we.
Have a great day.
Geoff Pyne | Certified SurfingThePips.com Trader
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