Hi and welcome to our blog, and our EUR/USD brief
Yesterday saw our hint at approaching extension levels play out with a sell off. We had a beautiful execution of our short trade with our level broken and then tested, with the next support level providing an ideal target.
The picture still remains a bit confused with poor Euro data being balanced by the hope of ECB help for indebted countries. I note the decision on releasing further funds to Greece has been put back and there must be a possibility that as rumored Greece hasn’t made the threshold and the European leaders need some time to decide if they will start damage control shortly and then stop he payment, or allow the ECB some leeway. This issue may well decide the mid-term future of he currency.
Technical Analysis
Daily Pivot drops down and is now a more comfortable distance from the weekly pivot. WE have the set up where pivot is moving in a direction, and price might test it heading in the same direction (DOWN), and stats wise this is a great short set up. However I wont be playing it today as below price we have DP, MP, 1.2330 Support, and WP. Its a lot of support to break and is likely to lead to a choppy ride down.
The 4H chart now has a lower mini low, and looks to be putting in what looks a lower high, bouncing of a resistance level. My bias here is short.
The Day Ahead –
With Daily pivot moving down, if we get a test we are expecting a break and a slow push down. The pair is especially vulnerable to surprise news at the moment and still needs some caution.
Bias- My overall bias is still short, I am still sure traders looking up to sell the peaks….
NO TRADE: I am not going to trade short today
Short entry: I expect price action to be short today, but there are too many strong support levels, and I will leave the shorts alone until the levels are broken.
Long Entry: I will go long today, after another higher high, and a pullback to a higher low, with a price action trigger to enter.
All the best
PBT
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