I sit here in my living room watching the news about the election results and I can’t wait for the volatility ahead of us in the next 24 hours. Technically things appear to point for a lower dollar as seen in the chart.

The weekly time frame shows signs of a messy consolidation-indecisive action with a wide range, the hourly is not giving us much to work with either. We are waiting on the big two catalysts: fed qe2 and election results tonight. So I am keeping an eye on that 76.50 area. But with all the headline risk out there I want to keep more of a neutral bias. I will particularly be keeping an eye out for a huge reversal pattern in a middle time frame (15 min chart) and if seen I will react to it aggressively specially after all the news are out.

Currently short tier 1 EUR/USD frrm the 1.4030 with a stop above the Asian’s session hod. Very short term momentum calls for dollar strength until firmly below that 76.5 area. Not sure if the party will start in an hour or so but have a long night ahead with plenty more action tomorrow when the fed comes out with their statement. stay frosty