Happy New Week Surfers – NFP, FISCAL CLIFFS, EUROGROUP & ECOFIN MEETINGS, ECB PRESS CONFERENCE, SUPER MARIO – it’s ALL HAPPENING!!
Friday was the ninth positive trading day from the last ten for EUR/USD, a new six week high being created in the process. The beautiful artistry of Price Action again all but kissing our super consistent critical S/R level of 1.3033. That very Resistance belted PA 60 pips downhill to Weekly Pivot, from which another unsuccessful assault was launched prior to the week ending with EUR/USD prepared to rest and regain strength below 1.3030. It being Friday, we didn’t trade.
A very fiery open to the week with buyers jumping straight into the action, sending EUR/USD back above 1.3033. Our Pivots are finally back in perfect formation and proudly Bullish which pleases me, given my sentimental short term target of 1.3080 with 1.3140 in extension. Of course the battle at 1.3033 has yet to be decided and it’s at this level where battle lines are drawn this morning. Technically, Daily Pivot has been tested, though it approached Price Action rather than the reverse (my preferred option). Snuggled next to Weekly, I would expect at least a pullback towards (if not testing) the pair, prior to the next sortie on the BIG R (1.3033). Until this occurs, it will be difficult for us to trade, given the lack of reliable trendlines. PA may rectify that but it’s a pre-requisite of entry and I’ll wait till either occurs before sharpening my focus.
The Day Ahead
Not a huge fan of Monday trading, I note with some interest the substantial (in recent context) move from the starting gun this new week. With the super busy speech, numbers and meetings later this week, perhaps the buying was the storm before the calm this Monday. I can’t envisage being a seller today but stranger things have happened when DP & WP combine forces. EUR/USD could be akin to a flea on a dog’s back this week, jumping all over the place, progress based on the thickness of the hair obstructing its path (announcements). Business as usual – Analysis, Hotspots, Entry Patterns.
High Impact News
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May you manage a magnificent Monday.