Another illiquid day for EUR/USD, less than 50 pips top to toe – the ‘high’light being a 27 pip M30 buying ‘spree’, followed immediately by a 25 pip selling ‘frenzy’. Our only invitation to enter came from the Bulls, who enticed us to place a Swing & Relax order but they stood us up and were a no show! No entries.
Whilst we’ve been awaiting the Bulls arrival, the Bears have quietly stolen ground and PA now finds itself @ 1.3600 and importantly, below the Support Trendline we identified as key level. Pivots and Short Term Trend are undeniably Bearish so really, it’s tough not to favour Shorts. To encourage Buyers, there’s the slightest hint that EUR/USD is oversold! Not historically, but in the context of a compressed market – the 55 pip gap between WP & DP, it just might be so – be a little careful!
The Day Ahead
The Bears have wrestled me to their side so looking for Shorts – perhaps a little more pullback first?
High Impact News – CET
|2:30pm||USD||Prelim GDP q/q|
|4:00pm||USD||Pending Home Sales m/m|