G’day Surfers – did you wave EURO bye bye?
I was expecting EUR/USD to rally a little before crashing yesterday BUT, not as strong a rally (100 pips from London open) prior to the fall. Indeed you could argue that the big sell off came only as a result of the Italian Election NON result, rather than ordinary market forces. No matter how or why, EUR/USD now finds itself without substantial Technical Support and under extreme pressure. Price Action gave us no opportunity to join either the rally nor the plummet so; flat we stayed.
As stated, EUR/USD has broken all Support Trendlines and finds itself relying on an old favourite Support Resistance level of ours (1.3033), to provide some buying stimulus. After a 260 pip fall and with an untested Daily Pivot 120 pips above the Market, my agenda is very simple today: NLNS (No Longs, No Shorts) until substantial pullback is achieved.
The Day Ahead
Fairly predictable I believe – no trading until much later. I can’t gamble on the lack of Support leading to further crashes NOR can I guess that the Support that does exist, will be the catalyst for a rally to the untested Daily Pivot. It’s extremely important to recognise this somewhat boring reality, lest your a/c will suffer. Until Price Action delivers one, I am unable to nominate a Hotspot so it’s a spectator sport early on for me.
High Impact News
|CB Consumer Confidence
|Fed Chairman Bernanke Testifies
|New Home Sales
Hey, there’s always the potential for Price Action to give us something – cheer up, it’s Terrific Tuesday!!