Blind Freddy could had a pretty good view of the Bearish “flavour” of yesterday’s market but only Hobbits were invited to party. We found an entry to catch the pre-sale runup in the day’s largest H1 candle (11pips) and duly found a TP1. PA immediately compressed before producing the ONLY candle of the day that exceeded 11pips. That 22 pip candle was the day’s one and only decisive movement and it came without warning. BE was the day’s result. A Swing & Relax order Long on GBP/JPY is yet to trigger.
Still the momentum is Bearish (albeit very slow momentum). In the absence of pre-Fed Statement positioning, I would expect PA to be happy with the current slow pace. The FOMC Statement due this evening is a perpetual PA thief and we could be in for more of the same. An untested DP always adds interest however so my focus will still be very much on our Hotspot – yes it’s solo today. There’s potential for a double bottom to form as well!
The Day Ahead
Again waiting for some size/liquidity to return. Have to be Short biased but the DP test might just be the play.
High Impact News – CET
|German Prelim CPI m/m
|ADP Non-Farm Employment Change
|Advance GDP q/q
Wonderful Wednesday all.