Question: Are Salmon an endangered species?
Hungry Salmon plucking Bears were sated again yesterday as another Euro rally was cut short, the currency tumbling towards the yearly low of 1.2620. Again, the Euro found our long term level of support just above that price but significantly, closed below our Support/Resistance Trendline – not good news! Under the mixed conditions yesterday, we were aware of market uncertainty and open to what Price Action would deliver. We found a bullish Pattern Alert which produced a break even trade amongst a fair bit of noise. Exemplifying the uncertainty beautifully, the very candle that gave us a TP1, became a nice pointer,of the fall that ensued, confirming one of our favourite Secret Candle Patterns. Entry here was not possible for me as I awaited a lower low prior to shorting the market. The setup was there among the noise however and I hope some took part of the 100pips on offer.
With all intraday charts settling below our major support @ 1.2677 AND below our long term trendline, Euro is now under enormous pressure and facing massive further falls. The plight of the Salmon trying desperately to swim against a raging torrent, appears futile and the fall to the pool below, inevitable. This scenario looms large as technicals now join fundamentals. There is good news; manifesting in the form of a nice double bottom on intraday charts which forms a triple bottom on higher time frames (oh, there’s also those long forgotten 2 open gaps). As suggested, yesterday’s crossing by Daily, of Weekly Pivot was short lived and the Pivots now point ominously Southward. The fact that Daily Pivot is yet to be tested today MAY hold Price Action to account but I feel that anything OTHER than BIG news out of today’s Economic Summit will see EURO at the bottom of the waterfall.
The Day Ahead
It’s been a tough market with technicals giving way to fundamentals but I now see them working in tandem because EURO has setted underneath major support. For this reason, I have jumped allegiance to the Bears. Ready to be enticed into a long targeting Daily Pivot however – my options are open. With only intraday trendlines available and the Ecosummit taking place, any entry I find will be low risk with a quick take profit.
Have a happy day and “Save The Salmon”
Geoff Pyne | Certified SurfingThePips.com Trader
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