ES bounced off the stall level on 1070 but is constrained in a channel on the 60mins chart, 1095 being a very strong resistance level just north of the channel boundary. The daily chart has now entered the strong retracement potential configuration we picked up last week, and would confirm a rise to 1095 also. Note however that profit taking has now set in on both daily and weekly charts, so we whall get back to 1062, and probably lower of the weekly channel breaks (also around 1062).
TF is also in an intraday channel, with a 610 upper boundary. As mentioned on Sunday’s report, the daily/weekly charts point lower with a target on 595, then probably 588 where support should be found unless the weekly channel also breaks. In such case, we will aim for ~530.
EURUSD bounced to 1.392 (and even a little higher yesterday as anticipated. It is following conflicting forces across time frames, but we can clearly see that a Fib target was hit on the 30mins chart, while the 4H and daily charts are trying to keep EURUSD above 1.392 now to trigger some buying to get back to the low 1.41s. While this would not affect the weekly chart in the least, the longer term outlook remains a target close to 1.375. We shall watch 1.392 carefully and position ourselves accordingly. A return to lows is our favoured scenario early in the trading day at least.
( Posted 5:55 AM UK )
