Gearing for election....

TGIF!! I will be watching "Skyfall" when U.S. announces their employment numbers today at 2030hr (Sin/HK). Remember what I have mentioned before ("Trapped again...." 31Oct) on how the market's potential knee-jerk reaction?

Asian sovereign interest was heard at around 1.2920/30 yesterday and that supported the rebound to 1.2982 in the NY session. I don't think it was a structural play but more of an opportunistic move. Though price stayed range bound, it has slipped below the trend line again and this has given the bears an advantage for now. Cross referencing the daily chart of EURAUD, this currency pair has already stayed below the 50DMA and this further add weight on euro. Though on the weekly chart, E$ continues to stay bullish but like I have mentioned, recent price action has positioned itself for a possibility for a break for 1.26ish. The U.S. election, major risk event, will dictate the short term move of currencies.

Latest order book update revealed the following:
Stop loss: 1.2840, 1.2860-80, 1.2920/25, 1.2985/90 and 1.3010/25
Limit: 1.2880/85, 1.2920/25 and 1.3010/25
But it is starting to become a bit more lopsided after E$ has been rejected a couple of times below 1.3000.

Technically, intraday indicator is in o/s zone though not extreme but would have increased the probability of a rebound upon any sell-off here. Market is caught between the 21DMA (red - 1.2973) and 50DMA (green - 1.2885) and this should dictate the range for today. Momentum continues to point towards range consolidation and guess this will probably be the way into the election next week.
For today, I see 2-ways trading opportunity. From Asian to European session, trade 1.2910/20 to 1.2970/80 range on first test. From late European to NY session, 1.2970/80 to 1.2880/90.

Expect market liquidity to be sub-optimal and therefore characterized by whipsaw price action, so stay nimble and have a trailing stop to protect your profit. All the best and have a great weekend!

E$ Daily chart - Still trapped in between 2 DMA