Some fancy footwork, a great setup & perfect exit ensured we banked profits on day two, of our 2014 campaign. Entry 1 (Long), produced TP1 but finished Break Even (BE) as the market see sawed. Opportunity #2 was created with the BE candle a little before NEWS. Those who opted to keep the, again Long order open through the News (not recommended) were rewarded with exactly the same result as those who closed but re-opened the order (as I did) once news reaction settled – target hit. Our policy of exiting at 1st Resistance proved spot on, when Price Action (PA) turned as expected, prior to reaching DR-1.
NFP week (as this is) tends to produce a consolidating market and so far, the first trading week of 2014 has been nothing, if not that! Daily Pivot (DP) hasn’t managed to move 10 pips yet so those looking for trends are “doing it tough”. PA is struggling to determine whether the well tested 1.3623 level is to be Support or Resistance but DP remains out front of a Bearish pivot formation and I favour a bearish continuation. The Fed minutes (Bernanke’s final delivery) due tonight will likely shake things a little but big moves are unlikely until then. Solution: Look for “little” ones – just be a little careful.
The Day Ahead
The range may break but I suspect not far until FOMC. I’ll favour Shorts but accept what PA delivers at a Hotspot.
High Impact News – CET
|ADP Non-Farm Employment Change
|FOMC Meeting Minutes
Wonderful Wednesday everyone.