G’day Surfers – no surprises, no market!
We didn’t need to be Einstein to recognise that yesterday was better suited to gardening (or any other relaxing pursuit) than trading. Price Action needed a rest after the 200 pip Bull run of the previous two and a half days – and rest it did. There was absolutely no market during London & NY Sessions as the market consolidated in a tight range around our strong S/R level @ 1.3115. Recognising there was nothing doing – we stayed completely at peace with the world & flat.Technical Analysis
Daily Pivot has come to meet the Market, rather than the reverse and that makes me a little uneasy. If it were different, I would be satisfied that sufficient retracement had taken place, for the Bulls to continue their Northward journey. Alas, I still see EUR/USD as a little overbought and would like to see some pullback. That said, I see good Support @ 1.3070 – 1.3085 and with 1.3115 proving a hard nut to crack, it might be necessary for the market to gain the required momentum to crack the Resistance. I am certainly in the Bulls corner and can totally see 1.3170 being tested today. Pivots are extremely Bullish but the gap between Daily & Weekly supports the pullback theory. We may however find our Technicals amount to nothing, pending news from the Ecosummit in particular, but a truck load of High Impact announcements as well.
The Day Ahead
Now there’s a VERY good question. I’m keen to find a Long but I have 2 problems: 1. Price Action is very close to our Strong Resistance and I’m not keen to trade into it & 2. I would still like to see a little pullback before pulling the trigger. Perhaps both problems will combine to create the opportunity I need. So – Plan A will be trading a false break of a relatively steep Support Trendline, thus giving me the pullback I seek and allowing Price Action a big enough run up, to tackle 1.3115.
High Impact News
|EU Economic Summit
Spanish 10-y Bond Auction
Philly Fed Manufacturing Index
Should be an interesting day as EURO awakes from it’s slumber – enjoy it!
Davide Franceschini | Chief Trader and Founder at SurfingThePips.com