G’day Surfers, if you are opening your charts for the first time today, I trust they show that pips were mounting whilst sleeping with the beautiful Swing & Relax long trade on EUR/JPY. We had a classic StP setup in the shape of the Rhino, on a nice resistance trendline, after the recent cross of the DP, north of the WP.
EUR/USD also performed as expected but a news announcement and no good setup, prevented us from entering. The cross fell short of testing the DP, bouncing rather off our resistance trendline before shooting straight back from whence it came, our major support level @ 1.3029. It is there that price action appears to have been comfortable right through NY & ASIA sessions so I figure it’s ready to make a move.
The big picture is still mixed with the inverted head & shoulders on D1, still intact but under fire. Until the shoulders give way to Bearish price action, there is still some hope of a Euro rally. The pivots are dead against this becoming reality but – there is also more than a hint of the cross finding a bottom. The gaps between lows are reducing in size and we now have a higher low on M30 & H1.
As I write this, price has raced toward yesterday’s support trendline and just like yesterday at around the same time, a nice comb formed (this time at resistance), to give those who were there, some early pips. Again the acceleration to place well after the setup – INTERESTING! Though violated, I have opted to leave yesterday’s support line on my chart (dotted line) as it may yet produce the ABC we were seeking. My chart is quite busy and I will delete a line or two very early on, to clear the clutter but really there are quite a few scenarios which is typical in this mixed situation. Favourite HOTSPOT today would be around the convergence of Resistance Trendline and yesterday’s support but I’d like to see a couple of tests of the resistance line before entering as it’s still Beta.
I’m seeing opportunities today but the mixed nature is warning me to make them AAA.
Have a great trading day.
Geoff |Certified SurfingThePips.com Trader
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