Short

Potential 2618 Trade Ahead

Updated

Spotted a nice little double top on the EURUSD 30-min chart. The trough between peaks is broken up by the weekend, but it's structure coincides with topside resistance to a bullish pennant on 7-27-16 @ 20:30, which then becomes support on the 29th. The downtrend following the second top breaks this support level, and a presumed retracement to the .618 level should welcome a bearish rally (assuming neutral 2Q mortgage data).

Note

Still side-stepping, but looks like the .618 was hit (with a little spare change up top) and has rallied back down to structure. I'd like to see support @ purple line broken!

Note

Looks like 2Q manufacturing data just weakened outlook on the USD, which may have diverted the trade for the time being. Unless MoM wholesale trade / inventory data and IBD/TIPP economic optimism is spectacular, this may continue upward given the weak dollar. If so, I'm sure it will meet resistance at the previous double-top.

MattSzwyd

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