Happy New Week Surfers,
Well we survived another NFP week but EURO didn’t!
Somewhat defying the bad employment numbers out the States and a good Production number out of Germany on Friday, EURO continued to spiral towards the abyss. Another 100 pips disintegrated pushing the cross into oversold territory.
Again surprisingly, our pivots are NOT that adamant that EURO is in need of urgent pullback with Daily only 46 pips adrift of Weekly. Our biggest clue to the cross needing a rally is the fact that Daily hasn’t been tested since last Wednesday – IT’s TIME! Price Action has also broken below our long term trendline and is looking to re-test it from below. For these reasons, a pullback is definitely the order of the day. Trading it will be extremely difficult however, given the strength of this Bearish Trend. We need a sign that the market has turned, in the shape of at least a higher low on a meaningful timeframe. Oh – if you’re thinking about trading WITH the trend…….do you REALLY want to risk the Daily Pivot NOT being tested for a 3rd straight day?? ONLY after the test – please.
The Day Ahead
Having very little in the way of tradeable trendlines, we will struggle to find entries today. We have a very good idea where the market is looking to head BUT, without Hotspots, we cannot enter with any degree of safety. Perhaps intraday action will provide us some guidance but till then, patience is the word.
Have a great day
Geoff Pyne | Certified SurfingThePips.com Trader
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