If Tuesday’s 70 pip range was supposed to kick start EUR/USD, someone forgot to tell the market! My memory isn’t as sharp as I would like it to be but I can’t remember in my 8yrs of trading, another day (Bank Holidays aside – but even then) when EUR/USD failed to trade outside a 20 pip range. Yesterday’s 19 pipper redefines the term consolidation and makes trading a complete waste of time. Needless to say, our Short order failed to trigger and we remain entry free.
Frankfurt opened this morning with intent. First move was Short and yesterday’s range was eclipsed in seconds. Significantly perhaps, as it broke the Descending Triangle continuation pattern. DP came to meet yesterday’s NO market but remains untested, out front of the Bearish formation. Recent history would suggest the 88 pip gap between DP & WP represents an oversold market but without a reversal pattern, it’s very difficult to be Long biased. Lots of news starting early so mid morning should be best trading.
The Day Ahead
One “peck on the cheek” in three days seems insufficient stimulus for DP so again it will be my favoured play, setup allowing. As above, it’s tough to think Long, (news pending) after that.
High Impact News
|9:00am||EUR||French Flash Manufacturing PMI|
|9:30am||EUR||German Flash Manufacturing PMI|
|4:00pm||USD||New Home Sales|
Have a great day everyone.