Yesterday’s report indicated ES was in a soft landing mode, i.e. congesting after a fall with a limited bounce at best. Upward retracement stalled on Fib/MM and congestion/confusion should now continue on (4H+) time frames. Time frames up to (4H) show a slight upward bias, while the daily chart is still pointing south. A support level is to be found lower, although probably above 1060.
TF retraced to Fib/MM in the 625 area as anticipated. Like ES, (4H-) time frames show a slight upward bias, opposite to longer time frames still pointing down. 625 was (and maybe still is) an ideal candidate for a previous support now turned resistance, often leading for renewed selling. It is however difficult to provide a clear direction right now. We will therefore keep our “bearish congestion” outlook on the daily chart for now.
EURUSD stalled around 1.29 as anticipated yesterday. The Euro should lose a bit of ground while remaining range bound (same as yesterday’s report)
( Posted 8 AM UK )
NB: Few Twitter updates today based on 4H chart
