Another symmetrical Triangle to break, another winner to find

Hi

Its always great when we get winners on consecutive days and yesterdays was a good one. We waited for Price action to confirm a direction by taking out the high and then pulling back, the higher low was a doji type bar followed by a low test and we should have been in. Risk on the trade of under 15 pips and a target of up to 45 should have seen us take 2-3% out of a simple price action trade.

Context

Overall things remain a mess. The Greek situation may get some form of resolution latter in the week and that may create a lift in the Euro. But even this should be small as we don’t really seem to have a solution that solves anything.  Spain still needs a bailout it won’t ask for, and America seems to be making only slow progress on the Fiscal Cliff issues.

The market will watch Fed Chairman Ben Bernanke’s statement today with interest. How has election victory and job security affected the Fed policies?

All of this means the big money is sitting on the sidelines, its waiting for some certainty and markets are doing little while this happens. The stock markets are starting to price in the possibility of problems in the US but the currency markets don’t seem concerned as yet.

Technical Analysis;  Daily pivot remains above weekly pivot even if is between weekly and monthly. Daily pivot has been tested and I am slightly Bullish because of that. Price action conflicts on our time frames with the 30 minute chart looking like a triple top so bearish, but the 4h chart still has higher lows and highs so is Bullish.

So the break of the symmetrical triangle will again be key this morning, a break and close outside the triangle is the first real sign of direction.

The Day Ahead –   It looks lke it could be quiet while we wait for Ben Bernanke to speak this evening.

Bias - Cautious, I will wait, it will tell me

 NO TRADE:  

BEST Short entry; If we get a break below daily pivot and the same move takes out the recent low, a pullback to any resistance I will look for the trade down.

 BEST Long Entry;  A break of the last high (and Weekly R1 level), and a close above the triangle would see be looking to get an entry and target DR1.

For pictures http://www.actionstowealth.com/looking-for-another-break-of-a-symmetrical-triangle-and-another-winner/

Other Entries

RED NEWS Today

All Day	EUR			Eurogroup Meetings
	1:30pm	USD			Building Permits			0.87M	0.89M
	5:15pm	USD			Fed Chairman Bernanke Speaks

If you have any questions you can submit them here or email me at paul@actionstowealth.com

All the best

PBT