NFP week can be a tough week to trade as the market often goes into it’s shell, awaiting the end of week announcement. Throw in some rumours of war and the mix can be “interesting”. The weekend’s gap and selling of EURO’s yesterday may well be construed as USD strength, associated with the Ukraine situation. There was no way for us to Short EUR/USD yesterday by the way and we stayed flat, as our solitary Long order expired.
This morning’s “return to base’ news has negated yesterday’s selling and I’m hoping, eases the uncertainty the market is displaying. Not surprisingly, Pivots are mixed with DP tested and we find PA ‘hung’ between DCZ’s 1.3700 & 1.3815 with an open gap to the North. This now familiar part of our charts can be considered no man’s land and assists very little in a directional bias. Barring no further news from Ukraine – there may be little change today.
The Day Ahead
Often poor expectations lead to surprising results. I am full of the former and look forward to the latter. For the record, I favour Longs to 1.3815 (still).
High Impact News – CET
Not today but watch this space.
Terrific Tuesday all.