The strong three way confluence at DCZ 1.2775 overpowered the Bears yesterday as PA accelerated beautifully through our Long order entry. It was quite a fun day of trading as we were firstly free trading Short (having ALMOST dismissed the Bulls) but quickly on standby for the Long which gave us three signals on different time frames, finally delivering on our S&R order. We have already banked on that and are hopeful of further profits.
Having fallen just short of the confluence level leaves us wondering if there may be some more upside today – at least to that level. Certainly the cross is cycling nicely since Friday with rally/retrace/rally well underway. That nice ebb and flow creates a nice Channel/Flag of course
and I am still looking to that, to dominate PA. What we must consider of however, is that it’s FOMC Statement day, and Technicals may well give way to that announcement. Certainly, I’d be expecting the market to consolidate prior to then.
The Day Ahead
Intraday it should be quiet – it would be nice to be still free trading our S&R trade when FOMC comes along – it could be a nice ride.
|USD||Federal Funds Rate|