G’day Surfers, more choppy surf, eh?
I was quite surprised when I measured the Daily Candle to find that the market traded in a 77 pip range – it looked and felt more like 27! How BORING and impossible to trade. As always, there was a good lesson however: when in doubt……stay out! Anyone who took the market on yesterday and a) stayed awake or b) made pips; did a very good job. The yo-yoing got going with a few 30-50 pip “runs” before REALLY contracting into consolidation, ranging only 35 pips since late NY session. Not surprisingly a Doji day and we found no entries.
Price Action has provided absolutely nothing in the way of clues to where it may be headed and our Technicals are telling us to be careful. I’m certain I don’t need to tell you that Daily Pivot has given Weekly the slip, opening up a near 100 pip gap and of course further distancing itself from Monthly, that gap now out to 450 plus. The weekend gap remains open as well and I feel these magnetic forces are the only thing holding EURO afloat. Just like yesterday and many recent days prior, we are left without options waiting for the market to confirm to us, which path it chooses to to take.
The Day Ahead
Frankly my dear – I haven’t the damnedest idea! As above, Technically EURO is oversold and needs a pullback yet so strong are the emotive forces (total lack of confidence in the currency), it’s REALLY difficult to go long. I still don’t have a meaningful higher low or any other confirmation that EURO has bottomed so I must wait for Price Action to either deliver me that signal I seek or to pullback directly to our 1.2174 S/R level before giving us a short entry. A test of patience for sure – but I see nothing else that’s safe.
ORANGE NEWS ALERT (Limit risk on Intraday trades): check them here.
Take care everyone
Geoff Pyne | Certified SurfingThePips.com Trader
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