29th May EUR/USD

Good morning/afternoon to you all.

The EUR/USD appears to be a little tired out from the long distances it is travelled recently and seems to have decided to have a rest for a few days.  It waits for more news out of the Eurozone or Non-farm payrolls on Friday. Fortunately it is a long range and there will be space in it for those with great systems to make some profits.

we will need to watch for unexpected news likely to offer some choppy moves.

Yesterday's Report –

 The EUR/USD started Monday by gapping up, a gap which it closed this morning. The pair has tested the top of the range at 1.2615 and the bottom of the range 1.2500. We did get a trading opportunity as it bounced off the resistance of weekly pivot, put in a low, a lower high, and then took out the lower low. I have pictures of this under our tip of the day…

WE had a similar S type entry opportunity for a momentum continuation short after price broke and retested the daily pivot. Also under tip of the day.

Technical Analysis

We have our first move up in the daily pivot in six days following the second day where price action went up and then retraced. This suggests the while the momentum is still short it has stalled for now as the market awaits new reasons to move. We have no decent trendlines to work with and therefor lack our usual road maps. We still have the weekly pivot closer to the daily pivot which opens the way for new shorts, but the monthly pivot is massively over extended. If we have a look down it may be early in the week and I would expect the big money to stay on the sidelines.

I expect price to test daily pivot and stay in the range today unless we have some kind of news move.

The Day Ahead –

We are looking for chart pattern type entries, and still trading at reduced risk.

Tip of the day

http://clip2net.com/s/1YnCy‏

Yesterday gave us another reversal of a resistance area with price action giving us an S shaped entry. There are a number of different ways you can enter this trade

Entry A; Enter at the low of the bar that hit the reversal level… is aggressive and will give the biggest winners and the lowest success percentage. Worth some coaching from Tom Jitan if you wish to trade this type of entry.

Entry B; Enter, at the bottom of the High test bar, that makes the lower high. This is a medium risk, medium return entry and is hard to resist.

Entry C: Enter as the low is taken out giving us a lower low to go with our lower high. This is our highest probability, lowest return trade and in my view the professional entrance. Professionals wait longer for opportunities to confirm.

 News Today GMT 3:00pm USD       CB Consumer Confidence            69.8        69.2

All the best

PLB