12th June EUR/USD brief

Good morning/afternoon to you all.

I do hope the blog is helping you with your knowledge and trading. Yesterday was another good day with direction, and I hope you got an entry and made some pips. If there is anything you would like added or removed from the blog, just let me know.

Context
 As the market starts to consider the detail in the bailout of the Spanish Banks, and the growing doubts about he Greek re-elections the market has a decidedly bearish feel to it.

Yesterday's Report 
Yesterday the market did as we predicted and closed the gap. There were plenty of lower highs to sell and this was an easy day to trade.

Technical Analysis
Today the market has come down and retested the previous low, creating a triple bottom of this level and our trend line. This level just below 1.2450 now stands as strong support and a place where bulls will try and hold any runs down. This does mean if the level breaks we will be looking at 1.2408 and 1.2280 pretty quickly.

Our pivots are still mixed and I expect that to hold any move down today, but if we have a selling day today, tomorrow will see the pivots lined up in bearish mode.

The Day Ahead –
Fundamentals are messy this week, trade carefully. Price might especially bounce around on predictions of the Greek re- election.

My feeling is with the market having tested weekly pivot might sit in between that and the recent low of 1.2450. I don’t feel like we have any reason to favor a direction, we have hard support below, and weekly pivot and recent Support and resistance 1.2515 above. While price sits in this zone I will rest and enjoy yesterday’s profits. Knowing when not to trade and when not to give yesterdays profits back is a key skill of a trader.

If price breaks out of the range i will to take a similar entry to yesterday, wait for a pull back to get a good price. My intuition is tomorrow might be the better day

NO News Today GMT

All the best
PLB