When FOMC is due to be released, not much happens on EUR/USD in the lead up and we saw that again yesterday with PA unwilling to stray far from DP, prior to the NEWS. Our only order of the day was a Short, hoping to catch any pre-news activity but it didn’t arrive. No entries and the Fed boosted US spirits and the Greenback, News driving EUR/USD 120pips South.
As you would expect, DP has crossed Weekly to the Southside, reconfirming the extremely Bearish Trend. PA has retraced by about 25% of the news move but well short of an untested DP. I can see absolutely no Support for the cross however, until 1.2800. Even the Double Bottom isn’t (even that is) so it’s not a reversal pattern in which I’d be placing too much faith. I will keep an eye on PA (just in case) though.
The Day Ahead
To end the week on a high, I’ll be looking for a DP test, then Short. The DP test trade will need to be very small stake as it will be like trying to turn the tide.
High Impact News – CET
|2:45pm||USD||Fed Chair Yellen Speaks|
|4:00pm||USD||Philly Fed Manufacturing Index|
Have a great day everyone.