Sunday night again crew and you know what that means. “The time has come to talk of many things. Of shoes and ships and sealing wax, of cabbages and kings.”
Of course in the original version of Alice in Wonderland, that quote continued, “…and Fibonacci, supply and demand levels and your basic moving averages.” However it was deemed a bit too much for the little ones to take in straight after seeing Alice drink a bottle of drugs and shrink to the size of a mouse, so they left that part out.
But for us, nothing is off limits, so here goes tonight’s ramble.
First up I’d like to throw you all back in time a little to a chart I posted a short while ago, namely this EU Daily:
Simple question. Is the head and shoulders pattern back in play? Does a break of the neck line ( 1-3035 ) open the door lower ?? )
Moving swiftly on before the market opens. Here is the 30 min chart with my new supply watch level marked out. 1-3153 is the very zone in question and if price DOES bounce back up there, I reckon it is, in the words of Status Quo, "Down down, deeper and Down.
Backing my little rally then drop theory up is this 1 hour FXCM Dollar index chart, which to me, shows price sitting at a prior resistance level, looking for a short fall before the big ascent.
So, here, in short, is what I’m thinking from the off. Don’t think we’re getting a huge bounce Asian as Asian never tends to do a great deal. But I reckon RC will get his long before we hit 1-3150 ish and then fall below the neck-line of the daily chart I posted.
Of course this could all be wildly wrong, but just for the record, I’m looking for a long from round about current levels, looking for 1-3115 at least.
Good luck to all this week.
HoG
EDIT: On second thoughts, I’m now actually wondering if there is a long entry closer to the neck line to be had. Spread too big to get in right now anyway, may give it an hour and then see.
