ES stalled around 1141 as we expected yesterday. There is no substantial selling pressure right now, but our indicators show a “air hole” situation, which could bring prices down, altough in an orderly manner, to find support on Fib/MM 1125 looks like a good candidate.
The daily chart is far too bullish to break that support level.
TF is as ever so often in a similar situation. It may even deny any retracement and even push higher to 671 shortly. The daily chart seems even determined to go for 680.
EURUSD is unfortunately not that enthusiastic, and the key 1.367 level we’ve been watching has not been broken. Selling pressure is now reducing on 1.361, but it could even break to get back to 1.355
Having said that this is normal congestion after the Jan bloodshed so it could carry on for a while. At this point in time, a recovery looks remote, but time can also help exhaust selling pressure a bit. Note that even if we passed the key 1.367 level, chances of passing 1.39 are very limited, while the downward potential is still there…
( Posted 7:45 AM UK )
