EUR/USD’s reliability when it comes to testing the DP, is well documented and a fact to which we pay much attention. Yesterday was one of those days where it’s extremely difficult to trade the potential ‘routine’ visitation, due to the extremely strong trend in the opposite direction. Nonetheless, an STP setup grabbed our attention early in the day and we placed the small stake order. The order expired prior to PA testing it to the pip, a few hours later. We found two other setups throughout the day but both also failed to trigger. The S&R Strategy found a setup on EUR/JPY. That Short has triggered and is currently in slightly negative territory.
Yesterday’s Doji day is probably what you’d expect on NFP Week Monday and the second last day of a very negative September. EUR/USD is in need of a rest and may well choose NFP Week to take it. That said, trading counter trend will only be contemplated at very small stakes.
The Day Ahead
The overwhelming trend remains Short but I’m thinking consolidation so am favouring trading within the DS-1/DR-1 areas. As usual – if PA shows me otherwise, I’ll react appropriately.
High Impact News-CET
|11:00am||EUR||CPI Flash Estimate y/y|
|4:00pm||USD||CB Consumer Confidence|
Have a Terrific Tuesday All.