As we’ve come to expect from an NFP week Wednesday, EUR/USD kept a very low profile yesterday spending most of the day in a 30 pip range, under DP. A brief ‘rush of blood’ effected a DP Test but PA withdrew very quickly to resume its ‘post’. A couple of setups promised breakouts in both directions but neither of our orders were filled and our only trade this week (EUR/JPY Short on S&R), retraced far enough to restrict our profits, the second half closing at BE.
Asia Session has produced some buying and PA has already tested DR-2 but significantly, has an H4 close above DCZ 1.2645. Though no discernable Reversal pattern exists, we can now see a higher low, suggesting a halt to the crash, if only a temporary one. Though the flood gates can re-open at any moment, taking EUR/USD further downstream, I still believe trading within the confines of this week’s Hi & Lo, is the way to go.
The Day Ahead
As above, break-ins are my bias, rather than break outs. If PA decides otherwise – there’s always Plan B!
High Impact News
|1:45pm||EUR||Minimum Bid Rate|
|2:30pm||EUR||ECB Press Conference|
Have a great day.