welcome to my favourite trading day of the week. Everyone should be back at work, no immediate gap pressure to contend with and that Mondayitis feeling has gone away. Funny then, that it feels a lot like yesterday when I look at the charts……..haven’t I seen this somewhere before?? Well it’s certainly true that just like yesterday, we begin the day with consolidation after a skyrocket took off. Big difference today is that we were onboard the skyrocket, unlike that of Friday. This thanks to Davide spotting a beautiful StP entry pattern on H4, at our hotspot of the day. I must confess I slept through the fireworks but awoke to find not only had my order been triggered, but my limit also. VERY nice start to our trading week.
So, are we in for a repeat of that price action?? Well, it certainly appears that the inverted head and shoulders is doing great work for the Euro and perhaps construction has begun on the stairway to heaven. Without doubt, our major resistance level of 1.3285 is within sight today and a break of this area will see the stairway in search of 1.3450. Only issue spoiling the scenario is that our pivots are now mixed with DP now wedging itself between WP to the South and MP to the North. This fact dampens my enthusiasm to go long but my sentiment is still bullish.
I must say the charts look quite technical and that is great news for us. We have a very obvious pennant (which re-inforces the bullish sentiment) created by our trendlines and two clear hotspots. I am very mindful of MP if we see a setup to go long directly and would prefer to see a break testing MP, re-test of trendline from above, then a nice master candle for entry. There is a 100 pip gap between DP & WP so a pullback towards WP is not out of the question either, if they decide market is overbought. Price action will lead us and as our hotspots are very close to the market, I’m certain we will have some answers early in the session.
Have a great trading day.
Geoff |Certified SurfingThePips.com Trader
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