G’day Surfers – how are you liking the marriage ceremony so far? Huh………….you know……….. Price Action and Daily Pivot!! The two have been inseparable for days now and the union seems determined to last. The explosion I have waited for all this week has not materialised – maybe today. Daily Brief is a little early today and hopefully still current by webinar time.
Not surprisingly, my analysis hasn’t changed much except that I have decided to formalise the nuptials by encasing the happy couple inside their own love rectangle. We have tried to let burst clear from our other boundaries so maybe it’s time to change our perspective a little – not really, we must draw what we see – ALWAYS.
My sentiment is very much in tune with the market – UNDECIDED! Early in the week I was most definitely bullish but price action has stalled just under the major resistance level at our Daily Critical Zone around 1.3285. This of course could be a rest break to conserve the energy required to break the level OR the Bears may take the opportunity to conquer the tired Bulls and crash the market to close the still open gap. I reason that if the latter were to be the case – a reversal would have come before now.. but we know the gap will close eventually. Logic has little place in this market however, just like sentiment. We ONLY trade after the 7 holy steps have been negotiated.
So – if they want to breakout today, my fear is that it will be without warning and VERY strong, giving us no entry. My hope is that they either create a quick false breakout, then turn and go the other way OR pullback to our hotspot and accelerate us to some pips. Price action is near to our convergence HOTSPOT which has crept above DP today!! I will also be looking for setups off our rectangle as well – so it’s sentiment = long, analysis = either direction.
Happy surfing all.
Geoff | Certified SurfingThePips Trader