5:29a GMT - The markets struggled to move at all yesterday, with virtually nothing happening throughout the entire trading day! I could sum up the entire day with: the markets rose a little bit, then fell a little. No new highs, no new lows. The only technical detail worth mentioning was that on the daily chart yesterday formed a (very small) bearish doji. Because it is so small however, on thin markets and not a new high it is a very unreliable bearish signal at best.
Daily Outlook: After failing to make a new high by breaking 1.4420 and the somewhat bearish daily doji discussed above I am back to leaning bearish, however the technical signals are weak at best and the market is without a clear direction at the moment. It would seem bulls and bears are content with the price at the moment as we go into 2010.
Trading Idea: Look for the pair to continue to consolidate in the 1.4420-1.4350 range, with a break of 1.4420 opening the way to 1.4500 and a break of 1.4350 opening up 1.4320 and 1.4275. Remember, markets are razor thin this time of year and tend to either do nothing or make big jumps, so trade carefully, always use stops and good money management!