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01 OCT 2012 | Free Daily Analysis | EURUSD : MAGNETIC NORTH TARGET

 

Happy New Week Surfers – It’s NFP week & Big Ben kicks it off later today.

Yesterday’s Report

Friday began with EUR/USD rallying through Asia & early London Sessions but the Bulls were hammered to the tune of 120 pips as London passed the baton to New York. The U.S. continued the free fall, stopping the rot just shy of 1.2800, a level that now looks under pressure as Price Action drifts suspended in no man’s land between our two major S/R levels of 1.29088 & 1.26777. As always, Friday was a no trade day for us and we enjoyed a stress free weekend.

Technical Analysis

Our Pivots are telling me everything right now and sadly, they are still mixed. With the first day of October, Monthly has come to play with it’s peers but Daily is spoiling the otherwise Bullish potential as it lingers below Weekly. Throw a 50 pip blanket over the trio however and they’re covered. That Daily & Weekly are in very close quarters (10 pips) spells MAGNET to Price Action so this is foremost in my mind’s eye today. Without a clear trend and more importantly Trendlines to play with – it will be tough to find an entry to play this scenario – or currently, any other. I have used a little “Trader’s License” to create a cheeky Support Trendline that may assist but really – Price Action needs to give us something useful.

The Day Ahead

Should my wild card Support Trendline be sufficient bait for Price Action, Plan A would be to play a false break of that line Long, targeting Daily Pivot. Outside of that however – I’m forced into a holding pattern until Price Action does it’s thing which of late – is very unpredictable. We’re not trying to be Nostradamus however and we will play with what the market delivers – let’s hope Cheeky is the flavour of the day.

High Impact News

 

4:00pm USD ISM Manufacturing PMI
6:30pm USD
Fed Chairman Bernanke Speaks

Have a great week everyone.

Davide Franceschini | Chief Trader and Founder at SurfingThePips.com
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