Even though penetrated around the open, the 1062 level surprisingly held yesterday, and ES could hover in the 1070, hit 1080 maybe. Yet, our daily / weekly charts still point lower, and selling pressure has to be exhausted either through a breakout (eneregy release), or through time (energy dissipation). In the former case, ES will move a quantum lower to the [1031-1062] price segment, otherwise the situation can remain confusing for up to a week (shorter time frames are then recommended).
If we take any cues from the much correlated TF, the short term upper bias is here finding opposition on the mid 590s resistance level, which could however break to around 605. However, same analysis as for ES: bearish energy must find some way to express itself…
EURUSD: we exactly had the yo-yo situation mentioned yesterday with prices moving from resistance to support then back, and we are almost back to the same situation today, with a higher probability of a breakout to aim at 1.39. Yet, this may not be enough to exhaust sellers in the short term on the daily/weekly charts and EURUSD may well carry on hovering directionless just above our strong 1,367 support level. Note that a reversal point on the daily/weekly charts may also be confirmed soon.
( Posted 5:45 AM UK )
