London opened and trading for us virtually closed shortly thereafter as EUR/USD in an hour, travelled nearly as far as it had in the previous three weeks. No warning signal was given – it was a short, sharp burst of buying that took PA to the mid 1.39’s, where it has settled for the time being. The only opportunity for us to enter, came as a Short setup promised to catch the retracement – it didn’t happen and the order expired.
The long suffering Bullish Pivot formation was finally proven correct yesterday and those conditions remain. Though poised for more buying ahead, in the context of the last month, EUR/USD is overbought. Is this then, the breakout we’ve all waited to pounce upon? I’m dubious! Pullback then, is my short term bias but the strength in the short lived buying yesterday, suggests the Bulls are waiting for a “good deal”. DP has been tested so PA is free to fly.
The Day Ahead
I’m not convinced that the mini break means 1.4000 is on the cards just yet, though I sense it’s not far away. Looking Long but would like some more pullback first.
High Impact News – CET
|4:00pm||USD||Fed Chair Yellen Testifies|
Wonderful Wednesday all.