A couple of good possibilities as consolidation continues

Hi and welcome to our blog, and our EUR/USD brief

Yesterday was another good day for us with our long trade getting a nice price action trigger off the Monthly pivot.

Context
The Euro finished the day close to where it started as it consolidated after last weeks moves. Continuing speculation that the ECB will buy debt t0 keep borrowing costs down holds the Euro up for now.

Technical Analysis
We currently have daily pivot above weekly pivot, with the monthly pivot between them. Statistics favor upward momentum on such days, but I expect it to be pretty slow. However yesterday we didn’t see a test of DP and big moves often follow days with no test.
The 4H has higher highs and higher lows, but it has just put in a high test at the top of the channel and now looks to be in search of a support level.

The Day Ahead –
We have already seen the statistical norms, where price attackers the DP travelling in different directions, and then the near certain retest. Statistically on 75% of occasions price will finish in the direction of the pivot love (long today)
Bias- My overall bias is still short, I am still sure traders looking up to sell the peaks….
 NO TRADE: I won’t trade between monthly and weekly pivot.
Short entry: We would need a lower low, and then a retest of DP, with a price action confirmation….Target Monthly pivot
Long Entry: I would need a higher high, and then a bounce of DP or Trend line. I will wait for the another leg (higher High, and higher low) to enter on for confirmation

 No RED News Today GMT

All the best
PBT