Last week did not disappoint those looking for movement, but the markets were short on picking directions. Last week’s jobs data shocker failed to propel the S&P to new highs and the Dow briefly broke into higher territory on Friday before settling down into a prior consolidation zone.
EURO ACTION
The euro held resistance last week on the 200 day moving average. We broke the consolidation pattern / bull flag I have been talking about and took a breather first on the .382 then the .618 Fibonacci retracements of the larger consolidation pattern from 1.280 to 1.318. We ultimately sold off just front running the .75 retracement.
CHOPPY AND SLOW
Trading will likely remain choppy and slow for the remainder of Monday. The US and Canada are celebrating Columbus Day so the stock markets are closed. Volatility will likely pick up tomorrow.
PLAY THE RANGE
Absent shocking news that gives the markets definitive direction, I would look range trading the Euro.
We are still clearly in a daily uptrend but we have not seen new highs since mid September. On a four hour chart, we are currently at a prior support / resistance zone and the path of least resistance seems to be higher. I would like at 1.300 and 1.305 for resistance to the upside. On the downside, if we break support around 1.295 look for 1.289 for support on the way down.
= = =
Read our daily Markets section here.
