Recap: We stayed flat yesterday as the resistance break never came to trigger our long. It would have, had we left the resistance from our original post alone but we did an intraday *tweak* that prevented the resistance break alert from being sent out (and saved us a loss).
The markets in general have not moved with conviction this week as traders attempt to price in the central bank's willingness to further provide liquidity to the world economy. Bernanke denied that any action was imminently forthcoming, but did hint that future stimulus was around the corner if needed.
For now the markets are in a consolidation pattern between 1.2450-1.2350 and have been since the major move upward (flag pole) that occurred last Friday.
Today's Important News Events:
|09:30||GBP Bank of England Inflation Report|
|*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.|
Trading Idea: We are short term bullish given the flag pattern but there are only horizontal S/R lines for this pair at the moment and we only trade trending S/R lines as part of our PipHut System so we will remain flat on this pair for the day.
Aggressive traders could look to get long on a resistance break or short on a support break.