Nice winner, as the market starts to move again

Hi

It was another good day for us yesterday with those who have waited patiently through the choppy, rangy last few days finally rewarded with a nice trend continuation bounce. The Trade was when price bounced off the Daily pivot following a nice low test reversal bar and anything up to 6% was on offer. The move ended at 105 pips just short of our over extension level of price moving away from the daily pivot of 110-120 pips.

I would like to thank THE DOMINION, Dominion Road Auckland for giving me a space and internet access to write and publish the blog today.

 Lets see what EUR/USD may offer us today...

Context
There appears to be ongoing discussions about Greece’s continued membership of the EU with comments from any of the involved parties likely to bounce price away. We also have the increased possibility of QE3 in the US offering a weaker US Dollar.

Technical Analysis
Daily pivot is now a little stretched at 160 pips above weekly pivot. This makes the likelihood of a test of the level even stronger.
The 4H chart now offers higher highs and higher lows, if looking a little over brought.

The Day Ahead –
I still like the long after a retest….
The pair is especially vulnerable to surprise news at the moment and still needs some caution.
Bias- My overall bias is still short, but I need to wait for some evidence.

 NO TRADE:
Short entry: I would need an aggressive break of DP. And a retracement to a lower high, if I got this and a price action reversal I would be looking for a sharp run down.
Long Entry: I would be looking for a good reversal pattern off DP. It would be very similar trade to the one that served us so well yesterday.

All the best

PBT