G’day Surfers – it’s Flat City out there; we need some swell but where are the winds of change?

Yesterday’s Report

All hail our Pivots as once again the combined forces of Daily & Weekly demanded the markets presence – and got it. We saw an opportunity to trade that scenario as London Traders clocked on for the day, playing an ABC off our intraday Support Trendline. Price Action almost took us into the market but turned on its heels with a “not ready yet” statement, surging 50 pips. It  then gave us a buy signal, against our determination that Shorts were the order of the day. Our analysis proved correct however, as Price Action was unable to defy gravity and was duly drawn into the vortex headed South and has been hosted by its captor, ever since. No entries available so we didn’t enter the market.

Technical Analysis

Quite clearly, our Pivots are displaying a Bullish Trend but I’m not so sure. On all time frames I am seeing lower highs & higher lows suggesting more consolidation is on the way. Certainly the market is displaying extremely poor liquidity since Friday’s spike, with only two M30 candles of 20pips or greater. This is a sure indication that the big boys haven’t yet entered the market, post EcoSummit. The poor liquidity also means our pivots are quite compressed. Technicals can be misleading in this environment and I would very much like to see some decisive action before I put my hard earned on the table.

The Day Ahead

It is with these circumstances that I further take heed of the USA holiday tomorrow and NFP on Friday and conclude Flat City may well be here for the week. As always, that doesn’t mean I’ve packed the Board in the van. It’ll be wax on if the swell rises and must confess to being a little Pip Hungry. One of my Hotspots is in charge of feeding me (see attached).

Have a great day

Geoff Pyne | Certified SurfingThePips.com Trader