ES was cheeky enough yesterday to stop one tick short of our target to carry on hovering in the 1070s. While there is some residual upward bias in the short term (mid 1090s?), we do not change our scenario (see previous reports) pointing towards some bearish congestion. 1062 will in the next week or be the test support leve going forward, i.e. determining which 31 point price range ES will feel comfortable (i.e. find find equilibrium) in.
TF is also fairly bullish in intraday time frames but it bumped on stall level yesterday. It could creep to 610 which is a strong resistance level. There is another potential target around 620, but TF would then need new energy either from a breakout on 610 or from some exogenous source (economic news). It looks fairly unlikely at this stage. Note that TF is less bearish than ES in longer daily/weekly time frames, so the exhaustion scenario above is possible.
EURUSD behaved expected except for a deeper penetration of the 1.367 level around midday. The 1.367 level remains crucial for a recovery of the Euro. If it holds (which looks quite possible), we will go for a 1.372, then 1.375, then range highs targets again. We may have a bottom here, but it is way too early to confirm (maybe in the next 2 to 3 trading days). Short time frames dominate the scene anyway, and are not quite compatible with this daily report.
( Posted 7 AM UK )
11AM UK Update:
The 1.367 support level broke this morning, we are therefore back in the scenario provided on the last weekly report, i.e. aiming at 1.34 …
