ES was kind of congested yesterday as expected, and we’ll check how long it can sustain prices above 1093. The daily chart still shows some potential to creep higher, but lower time frames are almost in a ‘airhole’ situation which could trigger some selling later on. The exact reversal point is not easy to determine though.
TF is also undecided and while it could reach 615 to 617, selling should resume some time soon. We will check 609 as a test support level early in the day.
EURUSD: the Euro stalled just above 1.4, in line with intraday levels, but did not quite reach 1.41. This was enough to send the Euro down again as anticipated, to hit range lows again where it is now hesitant about the way forward. There is indeed some mildly bearish congestion at this point, which could delay our journey to our 1.375 target. That objective is on the weekly chart anyway, so could even occur after the Chinese New Year (we’ll be careful though as a volatility spike could make it happen sooner than we think).
Note also that plus/minus a pip on the weekly chart is accurate enough, so we’ll check lower time frames for a more precise target as we get close to that level. In the short term today, we may even see a bounce to 1.392 to then see sellers take control again.
( Posted 6:05 AM UK )
