EUR/USD showed signs of life yesterday, as buyers stepped in from London open. Two hours of buying saw the open gap close and a mini break of the two week long 79 pip range. We spotted a sign that the open surge might have been false and placed a Short order to catch the response from Sellers but they had nothing to offer and our order expired. When the inevitable profit taking took place, a Swing & Relax setup appeared and that Long order is yet to trigger.
Currently at the top of the fortnight old range, we may be about to discover if the breakout is real. Pivots have resumed their Bullish formation but DP lies in anticipation of a ‘regulation’ test (barely tested on change of day), below PA. With the FOMC Statement tomorrow, a European Bank Holiday on Thursday and NFP on Friday – perhaps today will be moving day! Technically, it’s still guesswork however.
The Day Ahead
I’d like to think a DP re-test might be Support enough to get the Bullish ball rolling but I’m certainly prepared to go Short, if the setup is there.
High Impact News – CET
|2.00pm.||EUR||German Prelim CPI m/m|
|4:00pm||USD||CB Consumer Confidence|