G’day Surfers – the beat goes on……
The relentless migration South of the border continued unabated with price action confirming little interest in 1.29 where it paused briefly, before wiping another 85 pips off the Euro’s value. Unable to enter under our strategy, we once again stayed on the sidelines.
Our Pattern Alerts were on the money however, spotting three alerts in quick succession. The one that triggered was a classic Surfing The Pips Secret Pattern which caught the majority of yesterday’s move to the South.
The market continues to dish up untechnical moves, forcing us to remain on the beach as the tide continues to recede. Our reasons for being unable to place a short order has strengthened overnight, as Daily Pivot has edged 115 pips away from Weekly. Further amplifying the oversold nature of the cross is Monthly Pivot, a further 240 pips to the North. Frustrating us a little, is the unfortunate fact that we cannot take a long position either, given lack of pullback.
With Daily Pivot untested since Friday, the pullback to at least there has occurred in the last hour. Maybe price action has realised it needs a breather but before we consider entering long – we must wait until price action gives us confirmation of a reversal by way of a higher low. The big picture is NOT bright for the cross with price action finding support currently but at a mediocre level. (see Daily chart)
The Day Ahead
Our prospects today lie with the well rested Bulls. If they have the inclination to wrestle control away from the Bears for long enough to close at least one of the open gaps, we’ll be waiting at our Hotspots looking for a ride on their backs. With a scattering of news throughout the day we will tread carefully of course.
Geoff Pyne | Certified SurfingThePips.com Trader
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