In what seems like an unprovoked surge, EUR/USD spiked 25 pips in a heartbeat as Londoners turned up to work yesterday. The unexpected buying spurt was short lived as Price Action (PA) retraced immediately but it’s ferocity caused a 3pip gap in the market. The resulting doji set the tone for a see sawing day that saw two new Hi’s and a 32 pip gain. The whipsawing nature of the day made it untradeable – our only order (a Long) timed out so no entries.
The slow but methodical rally that began two weeks ago continues to pose more questions than providing answers. The Ascending Triangle of the past few days appears broken but barely and the opposing Flag remains intact. Pivots are still Mixed and so does my bias. An untested Daily Pivot (DP) below PA provides me with a Short Term Bearish outlook.
The Day Ahead
Looking for a setup to play the DP Test first up, then I’m completely open to what PA delivers but Short has a nice ring to it! Big news day for the dollar may keep the market quiet early – we’ll see.
High Impact News – CET
|USD||Core CPI m/m|
|USD||Core Retail Sales m/m|
|USD||Retail Sales m/m|
|4:00pm||USD||Existing Home Sales|
|7:00pm||USD||FOMC Meeting Minutes|
Wishing you a Wonderful Wednesday