G’day Surfers – steady as she goes.
I had to check twice to believe the Daily Range yesterday was an above average 122 pips. Perhaps the “gentle pace” of the market deceived me but certainly London session was extremely boring and uneventful as Price Action “edged” its way towards Daily Pivot (failing to test it), before the day’s only real move commenced. Somewhat curiously, counter poor Economic data, EUR/USD travelled the entire 122 pips North after an initial spike South. Despite our analysis being 95% accurate, there was no way for us to enter the market.
Daily Pivot has all but smothered Monthly, just above the now broken 1.3115 Daily Critical Zone (DCZ). This area (1.3115 – 1.3129) is clearly the level of the day – should it hold as Support, EUR/USD may well be on its way again. DP has been tested and is currently holding the market up, close to our Resistance Hotspot. A bounce here, would suit our strategy to trade Long.
The Day Ahead
With our Pivots still mixed, direction is still cloudy but the Bullishness post bad economic data yesterday has me thinking Long. As I write this, I have a Long order placed, awaiting some acceleration through 1.3145 area. That, naturally enough, is Plan A for the day.
High Impact News – C.E.T.
|4:00pm||USD||Fed Chairman Bernanke Testifies|
Have a great Wednesday everyone.