Despite (or perhaps ‘in spite of’) the combined magnetic forces of an untested DP and a Market Gap, PA found a re-test of DCZ 1.3815 more attractive in a typical Monday 55 pip range. We spotted an opportunity to trade the DP Test and were rewarded with a TP1 before PA about faced in search of Support, giving us a Break even result.
The only difference to yesterday is that PA currently lies on a MP bed and DCZ ‘mattress’ at 1.3815. Hovering above and completing a very cosy ‘resting’ place are a unified (and still untested) DP/WP. For the record, Pivots are holding (barely) a Bullish formation. Melted down, those ingredients combine to suggest Longs are the ‘flavour’ of the day. Not for the first time (nor, I suspect the last), 1.3815 is the key level – Bullish above/Bearish below.
The Day Ahead
Tough not to be thinking Long but the market is very compressed. Cautiously Bullish.
|German ZEW Economic Sentiment
|Core CPI m/m
|Fed Chair Yellen Speaks
Terrific Tuesday everyone.