As usual, like Friday, Monday trade requires traders to be more cautious than usual so keep it extra tight 😉
If you really feel the recover is on track and everything is fine, then you can join the party and keep on buying the ES and all forms of risk… on my side, I am slightly less convinced and therefore remain bearish and am looking for opportunities to short.
Having said this and keeping in mind it’s a Monday, I will be in no hurry to take a position and will watch very carefully for signs of this rally sustaining strength but I would be surprised to see Euro and Cable strength throughout the whole day > ideally London starts to slow this down but it might continue to push until NY.
- EURUSD > initial focus on recent spike at 1,3490s, then 1,3560s
- GBPUSD > initial focus on recent spike at 1,4960s, then 1,5010s.
- USDJPY > still swing long and today focus on 92,50s/93 range.
Stay safe and be ready to stand aside or change view if levels do not hold! Always nimble.