Hello traders
So NFP under delivered on Friday, which would normally see the dollar recoil and lose value but instead it seemed to have the opposite effect. Possibly because it strengthens the view that the Fed are unlikely to raise rates for a while.
I wrote on Friday that I was looking for a reversal signal between 9700-9750 and we pretty much got exactly that reaction, the problem is, I didn’t trade it. So I have missed this one and I have to sit back and watch the move play out. I am sure there will be plenty more opportunities.
The daily chart shows a bounce from the trend channel support and can find retracement resistance between 10115-10200. The 4-hour chart shows price breaking through the bands to the upside after carving out a higher low. Even the hourly chart has now shown a rejection as price returns within the channel, albeit a tenuous channel.
Today we are fairly stretched already, we have reached the daily R2 on the pivot point indicator and it’s not likely we will trade much higher than 10150 today (not impossible, just not likely).
Bulls will be looking to buy from 9975, assuming that our bullish trend is still intact and looking for targets between 10300-10500.
Bears are looking to sell in the resistance zone mentioned earlier and looking target a rejection of the current price action and a continuation of the bearish momentum from last week, aiming towards 9650.
Dax Support & Resistance
KEY LEVELS | |
Daily R2 | 10054 |
Daily R1 | 9987 |
Daily Pivot | 9860 |
Daily S1 | 9793 |
Daily S2 | 9666 |
200 Day EMA | 10165 |