There was something in the air yesterday and being in the market at the right time was the key to success or failure. Our timing was a fraction out and we paid the price as the EUR/USD skyrocket launched without us. Two Long intraday orders were placed prior to the blast off: #1 triggered but produced a break even trade as PA retraced pre-launch. #2 Expired just 30 mins before ignition. Our hapless Short order was due to expire a couple of minutes after it triggered and of course, the rest is history. We also placed a S&R Short but it’s trigger point remained unused, some 200 pips from the close of the day.
The big question today of course is – was the huge reaction to News a game changer? You’d be pretty naive to think EUR/USD would continue to fall forever, without decent pullback so the more relevant question IMHO, is – how far will it retrace? The Flag we’ve been tracking is now looking ‘well hung’ from where I sit and the DCZ 1.2775/1.2800 #1 is well proven. The Bulls will need plenty of fuel to fire the next rocket but there is a great confluence at the next Northerly DCZ (1.2945) #2 so we are delicately poised at this level. I sense the market is nervous so we might be in for some volatility again today. I’m still trusting the Flag – so I’m once again Bearish. Oh, did I mention a descending triangle is taking shape?
The Day Ahead
I’m looking forward to today’s market – should be interesting to see the reaction to yesterday. I’ll be Short if the setup comes.
High Impact News – CET
|4:00pm||USD||Philly Fed Manufacturing Index|
Have a Thrilling Thursday