ES did test 1062 as anticipated (typical former support turned resistance), to resume falling toward lows again. Bearishness is however decreasing hence support could be found in the 1038-1041 range, or around 1031-1033, where the market will then congest. Very limited bounce potential on support levels. On higher (D/W) time frames, bearish congestion could take to recent lows (1000), to be followed with lasting congestion.
TF which has been leading ES for quite some time, also tested 610 for resistance to then lose ground again. Despite this continuing selling pressure, we do see a possible end to this (4H-) pattern on current lows (strong support on low 590s). We therefore anticipate a bearish congestion on (4H/D) time frames for the moment, with prices hovering within last week’s range.
Back-throttle on EURUSD is taking time to materialize into a significant retracement. The Euro will try and climb to (4H) Fibs, but the market is still looking for a direction, or at least to confirm the 1.264-1.2695 as a support range. Longer (D) time frames seem to confirm a limited upward retracement in this down trend. We will have to review (D+/W) time frames as we go along in the next few weeks, to try and predict the support level as discussed repeatedly in previous reports (weekly cup&handle formation).
( Posted 7 AM UK )
Twitter updates until mid afternoon UK, based mostly on 4H time frames, unless justified by market action.
