G’day Surfers – It’s probably NOT the Trendline’s fault!
Totally without surprise, EUR/USD traded in a 36 pip range yesterday, as the Brits celebrated the last Weekend of Summer, by taking a long one (weekend). As is our policy, no trading was contemplated on a UK Bank Holiday and the market (or lack thereof) clearly demonstrated our reasoning.
In fact, EUR/USD has traded in a 75 pip range since Wednesday and is now congesting. Notably, Daily Pivot has been tested multiple times since Weekly crossed over to the North, after week’s end. This depicts no clear market direction with Price Action clinging to the Pivotal pair and our long term Resistance Trendline #2, as if magnetised. Now at the narrow end of a Pennant #1 formation, we can look forward to a break from consolidation – soon. With the absence of a lower Hi on Daily Chart, my bias remains Bullish.
The Day Ahead
Without a lot of conviction, I’ll look for opportunities to get Long but my immediate focus is with the Pennant breaking. Should we get the right signal – trading that, will be plan A. The method will be discussed in today’s LIVE TRADING ROOM .
High Impact News
|10:00am||EUR||German Ifo Business Climate|
|4:00pm||USD||CB Consumer Confidence|
Terrific Tuesday everyone.