Same same but different

Hi

Well it’s a Monday morning and its same, same but different.

Its different because it’s a Monday morning following a week where The ECB actually did something to support the Euro, Big Ben and the Fed launched QE3 and on Friday the EUR/USD continued the strong rally after these events. It’s the same because we need to start our trading week watching and seeing what the big players are going to do. Let them confirm a direction and then join in. It looks like a promising week...

Context
European bond buying and US easing monetary policy are changing the financial picture. The Euro is rallying and for now we must respect that picture however uneasy it makes us feel..

Technical Analysis
WE have a lovely pivot set up with price above Daily pivot, which is nicely above weekly pivot. We are bullish for now.
On Friday we didn’t see a test of DP and while tests are regular, the non-testing days come in runs and often bring big moves.

The Day Ahead –  
We need to trust the technical set ups and look for longs
Bias- My overall bias is still short, but the market is the hands of the Bulls at the moment
 NO TRADE:
BEST Short entry: I won’t be looking for a short today
BEST Long Entry.. I am looking for a pullback to support and a price action entry. I will take half my position off at 1.3160 and the rest could stay for the ride.

Other entries..  If we get a test of Daily pivot, I will wait for a bounce and then a pullback to enter long.

All the best
PBT