G’day Surfers, you should all be rested and ready to tackle the challenges of the day. Let’s face it – we didn’t exactly exhaust ourselves yesterday……………….
It was pretty clear, wasn’t it – that yesterday was going to be a hard day at the office? Just sixty eight pips of movement on EUR/USD had us reaching for the caffeine supply in an effort to stay awake. Whilst “Red Bull” may have been the choice for some, there were certainly no Raging Bulls to be seen. The very slow movement that did occur was in fact the pullback we sought – just not enough of it, at a snail’s pace. Needless to say – we stayed flat.
Price Action is loitering just below massive Resistance in the shape of an eleven year old trendline and its peer the 1.2333 level. Having broken the old fella on Friday, Price Action with that sloth like movement yesterday, has re-tested the trendline and at this point, wants nothing to do with it. The same bounce produced a break of the continuation Flag that formed yesterday. So it’s clear cut that we’re heading South – right? Sorry guys, if it were that simple we’d ALL be able to fix the World debt crisis. The “fly in the ointment” today, is the now substantial gap between our old sparring partners, Daily & Weekly Pivots. The 110 pip chasm that has opened up is not the limit these guys drift apart but it’s certainly stretching their comfort zone a little. So whilst the strong evidence for a Bearish continuation exists, so too does the need for Daily & Weekly Pivots to get a little more cosy.
The Day Ahead
When the Pivots are mixing up their stories a little, we rely very heavily on Price Action to deliver us a special present at our Hotspots. Despite the mounting evidence for Shorts today, I can almost taste a false breakout of the Intraday Support Trendline and this is my Play of the Day. I will of course, be open to what the Market delivers so am ruling nothing out. Ecofin Meetings might shape us a little also – we’ll see.
Enjoy your day
Geoff Pyne | Certified SurfingThePips.com Trader
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