We expected the DP would be tested and it was Plan A for the day but PA has a mind of its own and it gave no indication as to when it would occur. Consequently, no chance to trade the play. PA did let us know it was going to continue its trek South and the Short order was placed. PA went into slumber land, waking only after our order expired. What was expected (further selling) again occurred, again without us – it happens and we wait for the next wave.
DP and WP remain locked together, enticing PA not to stray too far. We join the action today with an untested DP ABOVE the market which has rallied a little off yesterday’s Low. The ‘comfort zone’ of the past three weeks (the range between DCZ’s 1.2400/1.2510) has reclaimed PA, after Friday’s rally and with the Fed Statement due tomorrow, it’s where we might remain, for a little time yet. With this in mind, I’m favouring trades within this range, without bias. Longer term – I’m seeing a pretty decent retracement Flag #1 – AGAIN.
The Day Ahead
Plan A then, will be for a DP/DCZ 1.2510 test, then a Short. Let’s hope the setup and the timing, get their acts together.
High Impact News – CET
|11:00am||EUR||German ZEW Economic Sentiment|
Have a Terrific Tuesday.