G’day Surfers – let’s just start the week again, shall we?Yesterday’s Report
Clearly NO-ONE turned up for work in London or New York yesterday as EUR/USD was simply NOT HAPPENING & COMPLETELY UNTRADEABLE. Our Pattern detector was sent into a frenzy as first one & then another candle pattern would appear in a totally illiquid market. EUR/USD ranged a grand total of 40pips in a seriously forgettable doji day. Five pattern alerts were detected & sent and we counselled our Live Trading & Chat Room attendees that the market was a spectator sport only. The first four failed to attract Price Action, with only the last triggering. The inevitable occurred as the 13pip stop was hit after Price Action continued to move sideways, very slowly. The call was for less than minimum stake so no damage done.
After such a slow day yesterday, some predictable fireworks prior to and during Asia Session earlier today. Again untradeable however and completely non technical, making analysis a little challenging. When this occurs, it’s straight back to basics and reliable trendlines. First basic is our Pivots, in relation to themselves and of course Price Action. Daily Pivot remains friendless (3 full days now) despite a 3 pip miss earlier. This is my #1 consideration as we enter today’s trading. The King of Pivots has reeled in the 270 pip gap between itself & Monthly (the pair now locked together), that existed 2 weeks ago. It has dragged Weekly with it – Weekly currently lagging by 65 pips. It’s easy to consider EUR/USD overbought but the Pivots aren’t agreeing with that analysis rather, displaying Bullish tendencies, if still a little mixed. The next resistance level (1.3020/1.3033) is certainly in Price Action’s sights, as is our long term Resistance Trendline and frankly, it’s difficult to imagine it’s NOT a target. The hint of a double top on H1 & M30 is interesting & supportive of a move on DP.
The Day Ahead
Not surprisingly, my Trading Plan has changed very little from 24hrs ago. Bullish still, I cannot envisage taking any entry until Daily Pivot is tested – not Long because of the absolute NEED now, for DP to be tested. Not Short because I can’t trade counter this strong trend, until a reversal is confirmed and if forthcoming, is likely to occur too close to DP to trade the move. We’ll wait & see of course.
High Impact News
Core Durable Goods Orders m/m
|4:00pm||USD||CB Consumer Confidence|