The anticipation of a Tuesday NFP announcement was palpable as EUR/USD marked time until the unusual event. Then kaboom – in seconds, the cross was almost 70 pips above the breakout point. We spotted an opportunity to trade the breakout and placed an OCO order, earlier in the day. The order expired prior to the announcement so the Free Ride we were seeking, failed to materialise and there was no trading possible, post the surge, as buying Euros became popular. The day closed 101 pips higher than where it began.
The familiar sequence of spike/consolidate looks set to continue today, as the market “recovers” from yesterday’s big move. The Daily Pivot (DP) still leads its peers in Bullish formation and they appear to be “dusting off” the Overbought sign but it’s not out just yet. Price Action (PA) is approaching a major Trendline #1 whose origin is the record High, just prior to the GFC Crash. That Trendline appears an obvious place for the inevitable Pullback, so more upside looks likely.
The Day Ahead
If yesterday was the calm BEFORE the storm, perhaps today is to be the “morning after”. I favour a test of DP before the buying resumes but playing a Short right now is NOT on my agenda. Craving a Hotspot to find a Long.
High Impact News
Willing you a Wonderful Wednesday.