G’day Surfers, yes it clichéd but true, the more things change, the more they stay the same.
What most expected, is precisely what happened yesterday as the Market erased all signs of a weekend EURO rally, taking out the gap like Dirty Harry would a smart assed crook. When the sell off was over, EURO found itself precisely where the Market left it last Friday, just below 1.2500. The move to the South was made just as we entered our webinar and began our trading week. After that, it was one way traffic with no green lights allowing us onto the Freeway. Barely a whimper from the British Bulls whom one might have thought would be cock a hoop from the weekend’s bailout news – afraid not! Monday, June 12th was a day where trading your sentiment would have paid off – I don’t recommend that strategy long term.
Really, the Market is trading technically perfectly with our Daily/Weekly Pivot Duo pulling Price Action back into line after a beautiful bounce off Monthly Pivot yesterday. Today, the return serve of Nadal could not have been more precise with a baseline blast off our 11yr old Support Trendline, sending Price Action towards the net (untested Daily Pivot). Apart from the gap being closed, really not much has changed overnight. Intraday charts are still producing higher highs & lows suggesting the Bulls are in charge (did I really just say that?) Let me hastily add that we are still in a long term Super Bearish channel as well as a potential flag continuation pattern (there – that feels more normal). Our pivots agree, with Daily still happy to be the rose between the thorns of Monthly to the North & Weekly to the South, a classic mixed signal for us. With the swift & sure closing of the gap comes a hangover – no resistance trendline to play with! Price Action will again be relied upon to maintain supply and we’ll keep our eye out for intraday structural change. On the support side of the ledger, a sneaky little intratrendline that is full of promise and will be given the opportunity to prove itself as the day progresses.
The Day Ahead
The fact that positive reaction to positive news couldn’t be sustained for even a day, puts me in a Bearish frame of mind yet the higher highs & lows on Daily Chart & below make for compelling viewing and again I must do this until the market comes to a hotspot. The fact that we have a couple is good news and I’m keen to see what Price Action has in store, when it comes to play.
Geoff Pyne | Certified SurfingThePips.com Trader
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