ForexSpirit

Lots of news events today so I wasn’t expected things to be too crazy. There was German Industrial Production straight away at 6:00 EDT, Bank of England bank rate and asset purchase facility numbers at 7:00 EDT, and the ECB’s bid rate at 7:45 EDT.

With that amount of impending data you’d expect the market to be rather morose but it was surprisingly perky.

The London session had been pretty rangebound for the last few hours but with a bid tint as price was still falling from the 1.4350 high reached during yesterday’s NY session.

The range was too narrow for me to think that playing it long off the 1.4280 support would yield much. Instead I wanted to wait for it to break through the support and then look for continuing short action.

Bias: short
Conviction: medium

Once the day’s low at 1.4276 was broken I waited for price to come back up to retest that level. I was in with the entry for the green sequence. I held until price did a micro-stall and got out.

Price then settled into a nice 10 pip range between 1.4266-76.

The purple entry was a bit sloppy, in so far as I got in about 2 pips below where I intended (due to a quick price jump). I debated adding a second leg when price touched 1.4276 at 6:58 EDT, but I considered it too close to the impending BoE rate announcement and held off. I got out at BE when price went nowhere a minute into the new hour.

There were two other times today I was close to putting on a trade. The first was at 6:25 EDT when price did another touch of 1.4276. The move up from 1.4266 had been a bit quick for my liking and I thought there was a good chance it might continue up and retest 1.4280.

The second time was at 6:42 EDT on a second retest of the low at 1.4266. I didn’t feel comfortable taking a long with my bias being short, so I held off.

In hindsight, the other best entry of the day was just five minutes later at 6:47 EDT. There had just been a third test of 1.4266. One of my setups is to play the failure on a third test. A long here would have worked out well with a smooth move to almost the top of the range.