Happy New Month and Week Surfers – trust you are well rested and looking forward to a short working week. Well last week saw price action breakthrough the strong resistance level of 1.3285 for only the second time this year. The market has not closed below that level since. What we have seen is a week of consolidation with trading confined to a range of around 100 pips, disregarding spikes outside. That of course makes trading very dangerous and our strategy has kept us flat and safe from harm.
So can we expect some trending this week? Well of course the truthful answer is “I have no idea” – my sentiment however, tells me more of the same for two reasons: 1) The big boys will not be too keen to enter new positions, given they will need to be closed by Thursday lunch and 2) There is very little news to be announced during London session for the entire week (short as it may be). That is not to say we won’t be alert to any opportunity that might come our way. My big picture outlook still has a target on our 1.3450 major resistance level and I can see this being tested before the Easter Bunny arrives. I’m hoping there might be an entry or two so we can get our Easter treats.
Today we have seen a small gap closed so we don’t need to consider that in our trading. What we must consider however, is that with the changing of months, our pivots have now caught up with our eyes, giving us confirmation of a bullish trend (DP above WP which is above MP). We also need to note that DP is untested since early Friday, so respect must be paid to the probability that it will be tested during this day. So that leaves us with a Bullish bias but waiting for a pullback to DP prior to a safe long entry. It will be difficult to trade that scenario given our hotspots are some distance from DP BUT I do have an interesting Warmspot created by a well tested Intratrendline so I would like to see this and DP tested early in our session, enabling price to find its way to our hotspots, allowing entry without concern for DP being untested. The hotspots are quite clear and I think that price action will come to play with us before too long – StP Secret Patterns at the ready. The Warm Spot might be the play of the day – we’ll see.
Have a great day everyone
Geoff |Certified SurfingThePips.com Trader
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