Firstly my apologies for misrepresenting our S&R Trade #1 yesterday. I missed the entry and was not trading it myself, hence the confusion. I wrote yesterday that the trade had closed at BE when in fact, it was still alive. In an ironic twist – S&R #2 (which I was trading) closed out at BE. #1 continued into the FOMC statement which whipsawed to achieve a BE TP2 and hence a small winner with TP1 banked. Sadly, TP2 was stopped by a very small margin. PA fell 2 pips short of 1.3600 during the News volatility and has now settled just above our 1.3585 DCZ.
The tug ‘o’ war between 1.3600 & 1.3500 is currently in favour of the Bulls who drove DP above Weekly yesterday, producing a mixed formation. This does nothing to help from a directional perspective but the fact that DP is untested, does. The Double Bottom we spotted on Monday, has its chance to shine today so my bias is twofold – DP Test then Long OR DP break and then Short. I will allow PA to guide me which path to tread.
The Day Ahead
I’ll give the Bears another chance and look for the latter of the two scenarios. If I fail to find it, #1 may be the way!
High Impact News – CET
|Philly Fed Manufacturing Index
Trust that Thursday sees you Thriving.