G’day Surfers – sorry for the delayed start to our trading week. The outlook for EUR/USD is quite different this Wednesday with the Bears wrestling control from the Bulls. Our ever reliable pivots gave us fair warning of this, having come together on Monday and then crossing yesterday, giving us a perfect Bearish bias. Indeed Asia session produced a very small but beautiful StP Secret Pattern setup & Master Candle for shorting the market – hope those of you that were there, spotted it.
The big picture appears clearer now also, with the Bullish Channel that began in January, yielding to the pressures that good USA news and continued uneasiness in Europe has fuelled. Outside our long term level it is now quite difficult to find lines to support this cross and it may be in for a rough ride. Having said that, price action has bounced beautifully off our major support level and may use this to go in search of the untested Daily Pivot.
It’s difficult not to have a Bearish sentiment but certainly there is room for a counter trend long trade targeting Daily Pivot, should price action return to our No 1 Hotspot of the day. It being counter trend and entry below Daily Pivot, will be ¼ stake only. So, as always the analysis is done – Hotspots recognised – trap set. We now watch & wait for our catch of the day. It may be a quick counter trend long, or a nice short after a necessary pullback testing our hotspots.
Either way – have a happy trading day.
Geoff |Certified SurfingThePips.com Trader
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