We were expecting the market to react to the “US Govt Holiday” and it did – by being quite uncertain, moving up & down quite irregularly. 70 pips virtually straight up, then back down, pausing long enough at the half way point to provide a trading opportunity. Our Short entry was triggered but failed to produce a TP1 prior to turning. A short, sharp rally followed, before Price Action (PA) proceeded to our original target. Recognising the risk involved with trading yesterday, we reduced our stake to minimum, thereby making our “withdrawal” a bare minimum.
Despite the volatility of yesterday, it mostly took place inside the two week old consolidation range. So it’s here we find PA, underneath an untested Daily Pivot (DP) which remains atop a Bullish formation. Yesterday’s rally produced a new High so the Double Top has been violated and sentiment SHOULD be Long. I’m finding any bias, hard to come by however and I feel magnetism toward the South!
The Day Ahead
A repeat of yesterday with an acute awareness of World events, any entry will be at VERY small stake. AAA setups will be the ones on my agenda.
High Impact News
|9:00am||EUR||Spanish Unemployment Change|
|1:45pm||EUR||Minimum Bid Rate|
|2:15pm||USD||ADP Non-Farm Employment Change|
|2:30pm||EUR||ECB Press Conference|
|9:30pm||USD||Fed Chairman Bernanke Speaks|
Terrific Tuesday to you.