Slow day in FX; I respond to Friday's naysayers on levels

As the UK awakes with a collective headache on the back of last night’s closing ceremony antics, most others are thinking of perhaps simply not getting out of bed this morning. And truth be told if price action so far is anything to go by, it looks as though many haven’t. The data slate is embarrassingly empty today in both the European and US sessions which will give the market even less to focus on. Then again, Angie is back from her holiday and may drop the occasional headline bomb before she travels to Canada for a 2 day tête-a-tête with the powers that be over there.

This lull in the market allows me to veer a little off path this morning and address all the naysayers and detractors of my piece on Friday. I made reference on Friday for the need to watch the close of trade and weekly levels so as to get a better understanding of what this new week may hold in store for us. This comment was greeted with cries berating the futility of technical analysis, the less than meaningful significance of price action in thin algo driven summer markets etc.
To one and all I repeat, the close was what you needed to watch not the nonsensical price action and volatility that preceded it. And the logic (especially in this thin market) of looking at where certain crosses closed the trading week, was pretty simple, it was in an effort to give us a better idea of who was ultimately in charge in these range bound markets, the bulls or the bears.

And sure enough for those that paid attention, you’ll note that the levels I mentioned in my Friday piece indeed held into the close and directionally, while still very quiet this morning, have proven to be correct and shown the way. Folks, remember it’s not always about grouping matters into easily identifiable and generic camps, technical versus fundamental, risk on versus risk off etc, sometimes it’s just all about common sense, much like I alluded to in my piece on Occam’s Razor.

No further insight today as there is indeed little going on and as such makes for a very good day to be dealing with piles of administrative paperwork that I’ve so far managed to put on the back burner. Pillows to replace helmets today? I think so.