The compressed nature of the market continued yesterday with yet another small range Doji Day – this time 45 pips! DP was crossed five times in that lot, making trading extremely difficult. PA did pretty much as we expected but offered no entry possibilities and we stayed flat. Our S&R EUR/JPY trade lost momentum prior to TP1 and is a little out of the money at present.
PA is once again DP’s shadow and appears very reluctant to leave the median’s side. Consequently, Pivots are unchanged and mixed, with DP ‘entertaining’ 5 of the seven H1 candles completed today. It remains more likely then, that trading Break-ins will be more successful than trading Break-outs! With the current Pennant nearing capacity however, the Break-out will be our first option today. No bias, but I still have my eye on 1.3475.
The Day Ahead
The Pennant must break so that’s Plan A. Direction doesn’t matter but a quick TP1 DOES.
High Impact News – CET
|2:30pm||USD||Core Durable Goods Orders m/m|
|USD||Final GDP q/q|
Wonderful Wednesday everyone.
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