A slightly positive day for EUR/USD produced a very nice positive day for us as we pounced on an opportunity to trade with the trend but against the momentum of the day. With only a 51 pip range to work with, our Short entry was clinical and effective, if a little slow to reach target. In a typical Monday market, very nice result.
The near doji day yesterday has clearly done nothing to change the landscape. Still we find EUR/USD under enormous downside pressure with momentum slowing a little over the past two weeks. Technical Support is approaching – at psychological 1.2800 and DCZ 1.2775 and it’s difficult to imagine any substantial buying will take place prior to one or both of those levels being tested. Until that occurs, I’m still thinking Short but perhaps trading inside the fortnightly range isn’t a bad idea so from here – cheeky Longs might be a consideration.
The Day Ahead
Early news today so it will be a patient start – not ruling Longs out.
High Impact News – CET
|9:00am||EUR||French Flash Manufacturing PMI|
|9:30am||EUR||German Flash Manufacturing PMI|
Terrific Tuesday everyone