G’day Surfers – No Market, No Trend – No Problems!!
We traders complain ALL the time when the market flatlines – with very good reason……we can’t make money!! Yesterday was shaping as one of ” THOSE” days with no liquidity or purpose. Daily Pivot to the rescue, giving us both direction and target. Finding an entry to take the Long was our part of the deal and we needed patience, which paid dividends, as a classic StP Candle Pattern emerged from the fog. An age seemed to pass prior to gaining Free Trade status and then more waiting as Price Action painfully crept towards our target. First resistance was a little foggy but was menacingly poised below our major Resistance and optimal target, Daily Pivot. Opting for caution in this extremely unpredictable market, I took my profit at the minor resistance level and was happy. After a
26 pip pullback, EURO gained the momentum necessary to hit Daily Pivot so those who were prepared to wait the 2 hours were rewarded further. Another 26 pips in the bank for me and more for some of the team.
Price Action resembles a Politician on a pogo stick displaying false moves and ducking and weaving all over the place – call it consolidation if you will. Amidst that scenario however, the bounces are quite technical and therefore tradeable, when setups occur. The bounce off Daily Pivot during NY Session an absolute Beauty, straight to Monthly and through a lively Asia Session today, straight back to the new Daily Pivot. That leaves us without the advantage of having an untested Daily Pivot which has snuggled a little closer to Monthly but still in no man’s land as far as trend is concerned. The widening gap to Weekly, whilst not critical, comes under notice as well. The test & rejection yesterday and again during Asia session today, of Monthly Pivot, has created a double bottom at the strong Support Level we flagged 24hrs ago. With those factors in play and whilst the low 1.2803 of Oct 1st holds, I will slightly favour the Bulls but a breach there will see Price Action testing the long term Support Trendline and put EURO back on a cliff face. To enter Long however, is now extremely difficult as continued lower Hi’s and Lo’s dominate intraday charts. The now usual lack of Trendlines to play with is also stifling but as it did yesterday, Price Action may rectify that. Until I see at least a Higher High or a nice Short setup, I look like being a Bench Player today but ever ready, should a new Hotspot appear or my existing one gets popular.
The Day Ahead
As above, I’m hamstrung as a Bulls fan and need to be patient. I’m certainly not ruling Shorts out however as final Support looms large. In fact, if there’s a target today, it’s that long term Support Trendline. Plan A therefore, is to play the gap between Intraday & Long term Support Trendlines.
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Have yourselves a great day
Davide Franceschini | Chief Trader and Founder at SurfingThePips.com