For the second day running, PA has delivered us setups very early in UK Session but on both occasions, the market has delayed its response. We escaped for free on Tuesday but yesterday, we paid a small price. First candle of the day setup Short and we were taken in but no TP1 was delivered. The entry candle produced a setup in the opposite direction and after some fancy footwork, PA had us in both Short & Long. The outcome wasn’t what we hoped for with the Short losing and the Long falling just short of target for a Break Even trade. Some did better by exiting with a 6 + 20 pip profit.
An indecisive candle yesterday has left PA hovering above 1.2900 but still unable to kick clear of DCZ 1.2945. The market is yet to decide whether 1.2900 is enough medicine to fix the ECB’s financial ‘condition’ and that may not change today. Everything is technically still Bearish of course and there needs to be good reason to trade Long. The Higher High and Low that is evident on H4 might just be a good start. A ninth consecutive negative week for EUR/USD would be without precedent so I’m keeping vigil above 1.2945, where an interesting confluence exists.
The Day Ahead
I’d like to think the market waits till we wipe the sleep from our eyes before setting up. If not, we’ll still be there. Looking for pullback.
High Impact News – CET
Have a great Thursday.