Happy New Week Surfers, if you ever needed proof that persistence pays off – just look at last week’s charts: http://clip2net.com/s/1Q74I
After 3 false breakouts of our 3 month old Support Trendline, price action finally gained enough energy to break northward at the third attempt. We were trying to catch this move all week on EUR/USD but they waited until NTF (No trade Friday) to turn on the afterburners. Whilst the market didn’t setup for us on M30 strategy after our nice 30 pips earlier in the week, the beauty of having Swing & Relax in our corner was exemplified with the capture of 75 pips trading EUR/JPY long @ 106.72 playing a resistance break using one of our favourite Surfing The Pips secret patterns. The trade took out our limit live in our week end webinar, giving us a nice way to start the weekend.
EUR/USD continues to trade in a range (1.3033 & 1.3285), from which it has experienced only a couple of false breakouts, since mid January. We charted these two levels when Surfing The Pips first shared the strategy, two years ago. Currently, price action is mid range, showing signs it is headed once again for 1.3285. Friday’s move to the North pushed Daily Pivot above Weekly but Monthly is still to the upside, confirming we still have no clear trend. Significantly, Friday’s high took out the previous Friday’s high with a very similar movement to that of the week prior. The new high sits just below our Monthly Pivot and I see this being a key level as we head into the new week. A break of this would make 1.3285 a huge & inviting target once again. With higher Highs & Lows on H4, H1 & M30 charts I’m quite Bullish for the cross and will be keen to find entries long.
The Day Ahead
With Daily Pivot untested since Thursday, the numbers are stacked against a further rally, without pullback to at least 1.3170 area. That will influence my trading but doesn’t eliminate my search for an entry off the resistance line we have today. On H4, there is potential for a long entry anticipating the break of this trendline. Clearly we will wait until the candle ends before making a decision. This is my #1 Hotspot of the day. Play of the day on M30, would be a test of this trendline from below, pulling back to get a run up and bounce off Daily Pivot in search of 1.3285. Of course if Price Action fails to break the highs, we have a nice support trendline to intercept & catch a second wave of any movement short.
Have a great day & week everyone.
Geoff Pyne | Certified SurfingThePips.com Trader