As EUR/USD sold off during UK Session yesterday, it felt very much like the market was positioning itself for DCD (Debt Ceiling Deadline) to pass and whatever reaction may ensue. The Bears drove Price Action to WS-1/our secondary Support Trendline #1 where it bounced 50% to re-test the broken primary Support Trendline #2. We spotted opportunities on each Strategy to trade any bounce Long but PA declined our invitation and we didn’t enter.
Both Support Trendlines are in sharp focus today, with PA sandwiched between them and a break of either, should provide direction for the day. Difficult to keep up with the “dancing Pivots”, Daily having AGAIN crossed Weekly, this time to the South, creating a Mixed scenario (is it ever?). So the range continues after yesterday’s failed attempt to break Short. Still guess work as to what’s next I’m afraid.
The Day Ahead
High Impact News
|8:00pm||EUR||ECB President Draghi Speaks|
Have a Wonderful Wednesday.