EUR/USD is ‘keeping company’ with our DCZ’s currently, bouncing between 1.2775, where it began yesterday’s journey and 1.2645, where it ended and still remains. Those familiar with ‘The Karate Kid’ movie will recognise my reference to the car waxing, as a metaphoric observation of the repetitive nature of what essentially, means consolidation. I had anticipated a little more buying (perhaps to the top of the ascending channel) before returning to the lower DCZ yesterday and indeed a setup arrived to accommodate me. PA had other ideas of course, so no entry.
The now broken is currently being re-tested at 1.2645. I see this as the crucial level of the day and should it hold as Resistance, look out below. An untested DP above PA makes that scenario a little more complex however. The sill mixed nature of the Pivots is no directional aid. With the Flag still the dominant chart pattern, I have to believe the Bears will emerge from this tug ‘o’ war as victors. Bearish with an eye on the DP.
The Day Ahead
There’s a bit of news about today (Super Mario is on overtime) adding to the mix so there may well be some more waxing being applied and removed – Short is Plan A.
High Impact News – CET
|9:00am||EUR||ECB President Draghi Speaks|
|2:30pm||USD||Core Retail Sales m/m|
|USD||Retail Sales m/m|
|8:00pm||EUR||ECB President Draghi Speaks|
Wonderful Wednesday all.
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