G’day Surfers – well we got our answer! Yesterday, I said the only question was “are they ready to break 1.3285”. As per the Daily Brief, they retraced to beyond the combined DP/WP, creating a beautiful runway, accelerated skyward, then hit the afterburners to crash through the atmosphere, that 1.3285 provided. Despite our crystal ball being in sharp focus, all tickets on the skyrocket had been pre-sold. We were news bound and unable to enter under our rules. That the break came at news time is of course, not unusual and part of the obstacle course we must negotiate on our way to consistent profits. More skyrockets to come and a few with the StP logo attached!!
So the big picture also, is unfolding pretty much the way we anticipated. The break of 1.3285 was very important in terms of medium term targets. We have spoken often in the past few weeks of the 1.3450 level and even the 1.3600 area. Whilst I don’t expect either to be tested today, week’s end isn’t out of the question. The bulls may be looking for a little rest for now however so look for our previous resistance levels to become targets and support today.
It is this thought that will be my dominant plan for the day and the lack of a fresh resistance line leaves me with the previous resistance line as today’s #1 hotspot. There is also potential for another, if price action forms an intraday resistance line. I want to wait for price action to unfold and maybe pullback to DP before entering today and I am NLNS (No Long No Short) at the moment. Why……….because price needs more consolidation/pullback after the skyrocket so long is risky and we are in a strong bullish move so short is just as risky. Price action and our hotspots will guide us and keep us safe – stay tuned and have a great day.
Geoff |Certified SurfingThePips.com Trader
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