Well “yesterday” seems like a long time ago and when we finished trading for 2013, EUR/USD was trading at 1.3675. The cross has done a little travelling since, having all but tested our long term Resistance Trendline, creating a brand new 2013 High in the process. Only two H1 candles closed above the previous 2013 High of 1.3832 however and not surprisingly, the strong Resistance has produced a sizeable bounce.
So it is, that we find ourselves trending Short on this, our first trading day of the new year, with an untested Daily Pivot (DP) well below Price Action (PA). Pivots confirm the Bearish Trend and it’s fair to say that there’s not a lot of substantial Support under the cross. With the last two trading days crashing the market by 225 pips, it’s also reasonable to expect a pullback. The fall seems to have momentum on it’s side though so sentiment must be Bearish but it’s a classic NLNS (No Long No Short) situation, until PA gives us at least a pullback to Resistance for a Short OR a Higher Low to play the counter trend DP Test Long.
The Day Ahead
I’m keen to see how many traders turn up for work today (some liquidity in the market) before getting too keen but either of the above scenarios could see me in the market on small stakes.
High Impact News – CET
|4:00pm||USD||ISM Non-Manufacturing PMI|
|11:30pm||USD||Fed Chairman Nomination Vote|
Have a Magical Monday.