It is a great joy when the market does exactly what is expected from it. As mentioned a few times over the last few days, 1125 is a very strong resistance, and ES indeed stalled exactly there to then retrace slightly.
ES could now find some support in the 1114 area. Technically support would be stronger near 1110, but we’ve only seen some profit taking and no real selling pressure just yet (except in 30mins time frames and lower, of course).
TF is actually even more resilient than ES, and while it could retrace to 641 today, we still favour a scenario to eventually test 655 in the next couple of days. Highs are always hard to break in circumstances like these…
EURUSD: I was anticipating 1.367 would serve as a support, but we may have to settle for 1.361 to 1.362. Overall
this is just the continuation of the same tug of war, but which should end up with a minor upward retracement. Again, we’ll only be reassured, when the Euro stays firmly above 1.367.
( Posted 8 AM UK )
