As expected, yesterday was a non event with New York and the rest of North America having a labour Day Bank Holiday. We didn’t trade of course but did notice that Friday failed to hold back the tide and EUR/USD completed its seventh consecutive negative week for only the 3rd time in its history – anyone for eight?
Dollar strength continues to drive EUR/USD South and our 1.3140 DCZ has been both broken and re-tested. This is hardly encouragement for Buyers and if they don’t get behind the currency this week, we will almost certainly see 1.3000 . Pivots and Trend remain extremely Bearish and with DP already tested, there’s really very little else to conclude than Short is the Sport!
The Day Ahead
I can usually find a case to trade counter trend but today it’s a struggle. Perhaps another test of 1.3140 AND my Resistance Trendline will provide the Short entry I seek. To trade it will be very risky and VERY small stake.
High Impact News
|ISM Manufacturing PMI
Terrific Tuesday to you.