G’day Surfers – Current Surf Conditions: Choppy!!
When EUR/USD ranges less than 60 pips in a full day’s trading – you know it’s going to be tough to make pips. Such was the case again yesterday with the six four hour candles comprising two black, two white & two dojis. All this “action” took place around the extremely popular 1.29088 level. NY session was understandably very quiet with traders more concerned about being blown away by Cyclone Sandy than the market. Wishing them all well in their battle with nature of course. We did spot a couple of opportunities (one in each direction) on both our strategies. Alas, Price Action has found other playmates and despite very nearly accepting our second invitation, opted out.
Despite the ooze like feel of EUR/USD’s slide, Price Action had settled below our long term Support Trendline and indeed 1.29088. This would indicate further downside, once the break was made. The lack of conviction that Price Action had displayed to arrive at this level, cast doubts in my mind however. The appearance of a double bottom on intraday timeframes suggesting a possible reversal to further confuse the issue and our Pivots still indicating consolidation through being mixed in their order. Bank Of Japan announcements earlier today have sent a few ripples through the charts however and changed the picture a little with Price Action now back above 1.29088 and revisiting the long term trendline.
The Day Ahead
We have to be prepared to accept what Price Action delivers today, by way of direction, given the mixed nature of all things technical. BOJ has certainly kick started proceedings and Super Mario is due to speak this morning as well. His speech will almost certainly provide the day’s sentiment for EUR/USD (despite the volatile late Asia session) so the hours thereafter will probably provide the day’s best trading opportunities. We have a nice Support Trendline Hotspot and a “cheeky” intraday Resistance Hotspot ready to snare Price Action and an entry, should they choose to play with us. I can rule nothing out so it’s long OR Short at either location – nothing like being versatile!
High Impact News
|10:00am||EUR||ECB President Draghi Speaks|
Italian 10-y Bond Auction
Don’t forget it’s NFP week so proceed with caution and have a Terrific Tuesday.
Davide Franceschini | Chief Trader and Founder at SurfingThePips.com