Despite the fundamental mess of the past few weeks, EUR/USD behaved in Pure technical fashion yesterday. Without bias, we slightly favoured a Short direction but another doji day resulted. The market’s first move was Long and a beautiful STP’s secret Candle Pattern had us in the market and on our way to an ultimate DR-1 Target (though WP was also an acceptable exit). DR-1 proved the perfect exit as Price Action reversed, plummeting to the Support of the 1.3470 Low of three weeks ago. A bungee ride day but hitting technical levels superbly!
With the USA operational again (albeit temporarily), we look forward to some trending. A tested Daily Pivot (DP) remains sandwiched between Weekly/Monthly and patiently waiting (like the rest of us) for PA to show it’s hand. It seems a while ago but the previous trend was Bullish so I’m favouring a resumption of the and therefore a breakout Long.
The Day Ahead
The dust is yet to settle in the States so I believe small stakes are still the order of the day and I have no intention of repaying yesterday’s gains. AAA’s at Hotspots should ensure the week remains positive.
High Impact News – CET
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Enjoy your Thursday.