Tuesday Prep

Yesterday finished with the lowest volume of the year with just 586k trading. The IS zone was touched a couple of times and held followed by a slow climb to the IR zone which was briefly broken. 

There is no excess left on the day at either end as demonstrated by the poor high and low.

The longer the market continues to trade in the current balance area, the greater the move out of it either way is likely to be. Longer time frame bias remains bullish and short term is neutral/bullish, with the path of least resistance to the upside to new all time highs. However, unless we see increased volume alongside a directional move, they could be false starts. 

Adjusted zones are shown below on the 60 min. If we do see a breakdown and the current month low is taken out, I would expect to see responsive buying at the 60.75-62.00 zone where the low volume area of the current balance is.

IS zone: 71.75-73.00  IR zone: 77.25-78.25

The overnight range so far is 73.50-77.50 versus the settlement price of 77.50

The merged TPO and volume profiles below show trade since the sell-off from the all time high. For any directional move we shall need to see acceptance above or below this value area (68.25-74.75) or the chop is likely to continue.