ES hovered above the 1094, rose a bit to then test the level again, nothing unusual… As anticipated in yesterday’s report, t then bounced to 1105, i.e. not quite as high as previous day’s highs.
Today the continuing congestion will again depend on ES’s behaviour on range boundaries. At this point in time, there is no indication yet of a breakout, even if 1092-1094 will definitely be tested.
The daily chart draws a Fib expansion pattern with a potential 1072 target but the energy is certainly not there yet. We’ll update our scenario in case of a breakout on our intraday charts.
TF has seems to have also given up on the 640 Fib target (for now), and on the contrary is testing support on 622-625. Like ES, we expect some congestion ahead, and probably some attempt to creep higher later today or tomorrow.
EURUSD retraced upwards to 1.362, then fell back again, submitting to dominant forces, i.e. bearish congestion at daily/weekly levels. Charts obviously look more bearish than congested, but we are now very close to a very strong support area, hence the current fall may stop on current lows (stall level ~1.3458), or strong support on 1.3428.
Any strong bounce is excluded in the short term, but we’ll watch carefully how the Euro then behaves.
( Posted 6:40 AM UK )
