G’day Surfers – back to work time.

Yesterday’s Report

 

As London Bank Holiday’s go, a 26 pip doji day is about par for the course. On that basis, yesterday was square with the card on EUR/USD and 1.3200 the popular ‘score’. No trading for us.

Technical Analysis

 

Our charts have a few noteworthy features not least being an open gap above PA, the aforementioned psychological number 1.3200 and a second gap. This is the one between WP and DP which is now out to 90 pips. Historically, 90 pips is no big deal but of late, it’s a definite warning of an oversold market (only 4 times in 2014 has the DP/WP gap been this big – last week being 1). These factors combined lead me to conclude that the market may be content at or above 1.3200 for the time being.