ES hovered in the 1300 area after hitting a quick retracement target on 1310 yesterday. Bearish congestion should continue today on (2H+), so a short Kase chart will be useful to pick up tradeable swings. Es looks range bound with a upward bias for now on those (1H-) time frames with a strong resistance around the same 1310-1312 area. (4H+) are quite sensitive to resilience level near 1300 where we have seen buyers coming back, and which could be tested again. We have no reason yet to believe the longer (D/W) bull trend is over yet. A (1H-) range breakout is possible either way, with a preference for the upside at this point.
TF is as so often in a similar situation with a bearish congestion pattern looking at aborting to allow for some recovery, possibly back to 810-812 test area. TF has not even retraced to the (D/W) resilience test level yet. We obviously have to be careful by following swings on a Kase charts and prepare for breakout here as well. Longer (4H+/D) are still looking at congesting towards highs again, where is a crucial test level on all higher time frames.
EURUSD passed the 381 target to reach 3835 where it congested under the influence of 381 and 385 levels which often act as magnets. Incidentally, the Euro is about half way between them. The same prolonged bullish congestion should set the scene for the next few hours. It will be difficult to pass 3855, but who knows… At least, there is no visible retracement potential in the short term.
T-Bond Fut. (US): Hit the strong resistance spot on where congestion is now expected on (2H/4H). Longer (D/W) are also looking brighter to maybe go test a higher Fib. This is a true reversal yet, even though the (W) pattern is there energy-wise, simply because the graphical pattern is still lagging indicating a higher support will have to be tested again before the market finally turns around.
( Posted 7:05 AM UK ) – Twitter updates on EURUSD (GMT+2 Office hours)
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