G’day Surfers – day 2 into another NFP week and webinars are looking like news free zones right through until no trade Friday, when of course the major announcements take place whilst we relax.
The old adage “No news is good news” may not be the case for us this week as the market potential rests awaiting “Frenzied Friday”. Yesterday had only an eighty pip range with the majority of the day locked in a 50 pip box. That the StP strategy bagged 28pips from that is quite an achievement. This tight range may well be the pattern we see develop leading up to Friday. Certainly with any entry we find comes a greater than normal necessity to bank TP1 as soon as possible (maybe tightening in to 5/6pips).
That said, I am seeing a very mixed situation concurrent with our ever reliable pivots. Technically we are still inside a bullish channel, albeit at the bottom edge. Certainly the bounce we were looking for yesterday occurred but without gusto, confirming the lack of energy in the market. We saw price rally to within 7 pips of DP, only to reject that level and bounce away, leaving us with a totally indecisive Daily candle. Today, price is like a shark chasing a mackerel, sticking on top of DP. It is difficult to be confident which direction they will separate – if at all and the only indicators are the same as I saw yesterday, suggesting upside. Whether they make a move prior to Friday, is debatable and we can only wait and see. Because yesterday’s mini rally lacked energy, I would suspect the support trendline (bottom of channel) to be tested again and this is my #1 Hotspot of the day. Again I will look for an exit of the long area – re-entry, master candle and long but very small stake (no real trend – NFP week – below DP). We also have resistance trendlines to work with so anything is possible!! Going is not such a difficult decision today as DP has been “worked over”. I will look to AAA setups as always, to show us the way.
Happy days all.
Geoff
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