Good morning traders. The eurusd closed Friday back above the 1.15 level at 1.1518 keeping the prospect of higher prices still open.
However, with the US, Canada and Japan all closed for bank holidays today we will probably have to wait until tomorrow to get a better indication of what’s in store this week.
From a macro perspective we have US CPI data coming out Thursday but apart from that there is nothing much of note on this weeks calendar.
With regard to those CPI data, I´m not a sure the results are going to move the dial one way or the other as we have already had the Feds Powell commenting that “…rates…..are a long way off neutral” suggesting a more Hawkish tone to the Fed and the likely trajectory of the USD.
This coupled with inflation starting to become an issue on central banks radar again and the more general move from QE to QT (quantitative tightening) on a global fundamental level all begins to point to higher rates…. but as ever, relativity is the key. More on this later in the week.
For today, I´ll leave you with the Daily and Hourly chart levels and keep this mornings diary short and sweet.
On a quick final note and without going into detail about entries, trade management and exits, if you had just traded the levels I published every morning last week on the hourly chart (level to level) you would have had a pretty good week with very little draw-down risk.
EURUSD Daily Chart
EURUSD hourly Chart
Have a good one compadres :).
Please note: All opinions expressed above are from the author and not necessarily shared by The Armchair Trader. All financial investments involve an element of risk. The value of your investment may fall as well as rise and you may get back less than your initial investment. With Spread bets and CFDs your losses may exceed your deposits.