G’day Surfers – now THAT’S a consolidation breaker!
You could smell it coming and trading was virtually at a standstill prior, but the FOMC Policy Statement produced a Tsunami like reaction and put a swift end to EUR/USD’s short term aspirations of another new High. We tried in vain to capture a break prior to the announcement and our Secret Candle Patterns were popping up everywhere. The market was refusing to move before the Fed’s News however and we took a couple of small hits. Four orders were placed with three triggered. We suffered minimal damage on the first two losing 9 and 11 pips respectively, at 1/4 stake. Our third entry produced TP1 but the 27 pip range pre-tsunami was not enough to yield a second and we closed at Break Even. On the surface, not a great day but our risk management ensured our losses were small in a market that really wasn’t a market.
The market will need some time to process the Fed’s announcement and technically, the distortion it caused requires some “reconstruction”. Lots more news today, may have a hand in that. Our Pivots “survived” the crash and remain in Bullish formation with Daily untested above Price Action. Asia reaction has been to sell Euros and our Daily Critical Zone of 1.3285 has been broken and Support is a little difficult to find. Very tough to be biased with Fundamentals pulling South & technicals, North.
The Day Ahead
I don’t pretend to have a great handle on Fundamentals but to my mind, the Fed haven’t changed too much so my belief is the market will resume it’s pre-announcement path and am therefore still a little Bullish. We are again “plagued’ with fundamental announcements however so just about anything is likely. Hotspots, setups & caution while the market settles.
High Impact News
|French Flash Manufacturing PMI
|German Flash Manufacturing PMI
|Existing Home Sales
|Philly Fed Manufacturing Index
It’s a busy one – enjoy it.