Hi
While the market looked down yesterday it struggled to break all the required levels and bounced around a lot. The move short we were looking for yesterday has come during this morning’s Asian session instead. Its unusually consistent selling for the Asian session and it does does hint at what the market is expecting today.
Context
Potential European bond buying and US monetary policy easing are changing the financial picture. The Euro has rallied and is now consolidating and awaiting direction. We are in the calm after months of major financial announcements and discussions and are now waiting as we digest the information and hopefully head back to a more normal trend. The next major news is likely to be Spain asking for a full bailout. You imagine that’s already partially priced in and could follow Spanish 10 Year bond pricing today. We are seeing the start of a USD rally with better than expected Housing news the first catalyst.
Technical Analysis
The daily pivot has moved down today and price has broken it travelling in the same direction. This is one of our favorite continuation patterns price is certainly continuing in the short direction. The Pivots are in bullish order but with the continuation break of DP and the support levels broken I am bearish today.
The Day Ahead –
We seem to have a USD rally and it wull be interested to see how many wheels it has.
Bias- My overall bias is still short, but the market is still pretty mixed at he moment.
NO TRADE: Im not trading long today
BEST Short entry: I would like to see a pullback to yesterday’s low or weekly pivot and then a price action reversal short.
BEST Long Entry.. With out news I think moves up could be to choppy for me.
Other entries..
RED NEWS
10:30am EUR German Flash Manufacturing PMI
Tentative EUR Spanish 10-y Bond Auction
3:30pm…USD Unemployment Claims
5:00pm USD Philly Fed Manufacturing Index
All the best
PBT
No comments:
Post a Comment