Its a bit like watching a Cricket Test Match

Hi
I am sorry that I didn’t manage to get a blog up yesterday. It was a quiet day and we didn’t miss much.
When i was growing up i used to watch Test Match Cricket and people always used to ask be how i could watch something so slow. I didn't realise at the time i was preparing for my future career as watching the EUR/USD between news announcements has far less action than a Cricket Test Match (especially when New Zealand are batting) and the patience learnt there is now important to capital preservation here.

Context
Once again the market sits and awaits the next major news. That news is the German Constitutional Court decision on the legality of European Stability Mechanism tomorrow, and the FOMC meeting on Thursday where there is again talk of QE3 being announced.
The market is likely to stay with in quite a tight range while it awaits thosse decisions.

Technical Analysis
Daily pivot is above weekly pivot which is above Monthly pivot so we have a nice Bullish set up. Today price has already tested DP travelling in the same direction as DP.
The 4 H Chart is still putting in higher highs and higher lows. The pullback does leave some room on the long side for a good entry.
We have broken the long term bearish channel line and have some momentum up..

The Day Ahead –
Bias- My overall bias is still short, but I need to wait for some evidence.
 NO TRADE:
BEST Short entry: We need to see more convincing selling followed by a pullback preferably to Daily Pivot, then a price action entry targeting Daily Support 1 1.2740.
BEST Long Entry.. I prefer the long today, again we first need some convincing buying, followed by a pullback and a price action trigger. We will be targeting 1.2800.

Other entries.. That all we have today, we expect to be in a tight range and only want to trade the best entries.

News Today
1:30pm USD Trade Balance

All the best
PBT