Price action will scream a direction with its next high, and once it does I will be keen to be in

Yesterday we should have profited from our long trade suggestion. We got a nice move up followed by a pull-back to DR1 and a reversal to Weekly pivot. We had two possible entries and depending which we took we will have made between 1 and 1.5% on the trade.

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Context

Overall things remain a mess. The Eurozone has rioting in the streets as group protest the austerity measures and the damage they are doing to growth and job prospects, and yet I think even the protestors know countries are going to have to find a way to live with in their budgets.

The Greek situation looks at an impasse, Spain still needs a bailout it won’t ask for an America has got a new expression ‘Fiscal Cliff” in our vocabulary and may soon bring the old expression “Damn Shambles” back in to vogue.

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. All we can do is be patient in the belief that the people who run these countries have proven they can create more Damn shambles than you would expect and the next one will give us a direction to trade.

Technical Analysis;  The pivots are our leaders and they are nicely lined up Bearishly, so I like the shorts. I am aware that my 4h chart currently has a higher high and a higher low and I need to watch this. If we currently put in a lower high, I am in business but if we get a higher high I will look to trade the bullish route and wait for the next lower high.

We have had a bounce off goodish support 1.2677 and have now reached Weekly pivot, we have seen a spike above WP but no close. This looks like the place where we could get the lower high on both the 30m and 4h chats to confirm the next bear run.

The Day Ahead –   Price action will scream a direction with its next high, and once it does I will be keen to be in. I am bearish overall and it looks like we might get some cleaner opportunities than we have in the last week.

Bias-  Bearish but watching price action, waiting for it to scream a direction at me.

 NO TRADE:  Between Weekly and Daily Pivot.

BEST Short entry; If the recent high holds and is a lower high below weekly pivot I am keen to get short. A beak of DP and a pullback to any resistance will see me try and push in. I will watch yesterdays pivot level but target 1.2677.

 BEST Long Entry;  If I get a close above weekly pivot, I will look for the first pullback and go long targeting DR1 and then MS1.

Other Entries;  

RED NEWS Today

1:30pm	USD		Core CPI m/m			0.1%	0.1%
	1:30pm	USD		Unemployment Claims			372K	355K
	3:00pm	USD		Philly Fed Manufacturing Index			1.1	5.7
	6:20pm	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