Spanish Budget, Rioting in the streets, looking diwn

Hi
Yesterday’s trade call short only activated in the early hours of this morning after a choppy day yesterday. Many of you will have missed but but for those who did get it, I hope you have locked in some profits and are hanging in for some more.

Context
The market is now watching Greece and Spain to see how their financial situations will play out. Will (when will) Spain ask for a bailout, and will Greece eventually decide to let go of the Euro. The market is nervous and the USD is strengthening a little as a safe haven. Not much has changed from yesterday. The market is waiting on the Spanish Budget and falling as the public riot before it.

Technical Analysis
Daily pivot has moved down and is below weekly pivot so I am a little bearish. We haven’t had a test of DP and with a couple of resistance lines in the way I would think it will take some form of news for us to back up that far.
The major change of the day is the aggressive break of 1.2908 and 1.2895. We have a lot of space down to 1.2677 and we will be looking fir a pullback and a chance to take that ride.
Yesterdays Doji did give us a nice lower high, but we now look ready for a consolidation, or retracement.

The Day Ahead –  
Things could stay very choppy in the build up to the Spanish budget. Anything is dangerous when its as choppy as this.
We have seen a support area broken with a big gap below it. We ae awaiting a pullback and a run short
Bias- My overall bias is still short, but the market is still pretty mixed at the moment.
 NO TRADE:
BEST Short entry: Wait for the bounce long here, then a price action reversal off something and we are in. Take some profit quick, get the stop to break even and leave some on the table for the big move. WE need the pullback to make this a quality trade, it will open up the space to DS2 and over extension.

BEST Long Entry.. I will give the longs a miss today, while they should happen it will be hard to know when. The best long would probably be the retracement here, but I’m not sure how long that will last.
Other entries..


RED NEWS
3:00pm     USD     New Home Sales
All the best
PBT