ES carried on rising purely on momentum to the resistance area, and stalled in the 1120 area as expected. It is now more hesitant than actually looking at retracing significantly.
A support around 1114 could be found, followed by some congestion. If buyers don’t give another go at 1125 again today or latest tomorrow, the pivot will confirmed and we’ll fall back to the low 1090s.
TF always gives us a similar picture from a different angle. First we’re happy that it hit our 650 target, but he could just as well drift down if the market doesn’t gather energy to reach 652.30 then 656. Resistance on these highs is quite normal though, so we have to be both patient and careful. Here again, no indication of any serious retracement in the short term, but we may need to find support around 640 or even a little bit lower.
EURUSD: we anticipated this kind of bearish congestion with a very strong support zone on low 1.34s. Now we’re back to the important key level aroung 1.367 which could unleash some buying on account of short-squeeze. Having said that, at this point in time (9:40 AM UK) we have no indication of a breakout coming, so the same congestion could continue at least for a short while.
( Posted 9:40 AM UK )
Update 4:50 PM UK: EURUSD, here we go… 
