Mark Wogan: EURUSD – Levelling the playing field
Good morning traders.
Yesterday went pretty much to plan.
I wrote “…My kick off premise for the day is to sell rallies so I’ll be looking to get short on any push back up to 1.1520 – 30 and I´ll be watching how price reacts here….” I also noted that 1.1480 would be our first downside test. As it turned out we couldn’t have been more precise!
Price traded down to our 1.1480 level first thing in the LO (London open) session, then went bid up to 1.1520s and then promptly sold off for the rest of the day (apart from one false run up to catch nervous shorts).
Point to point, level to level, job done.
Playing field leveled.
What does today look like?
As noted, our pair really needed a close back above the 1.15 level to maintain a bullish bias. We didn’t get this so my expectation is for further downside.
On the daily chart below you can see the levels I have in mind. Of major interest is the 1.13 level because below this we have some room to slip to the 1.10s or even below. My instinct is that prices below here would start to look cheap and if we get there we might see some longer term positive sentiment returning. More on this should we get down there.
EURUSD Daily Chart
On the hourly chart the key downside level for today will be the big fig 1.14. There´s not much support below here apart from the 1.1350 and the 1.13.
It is Friday though, so we might get some profit taking so watch out for any bullish pa on the ltf (lower time frame) charts for a run back up to 1.15.
EURUSD Hourly Chart
While it’s been quite a difficult week in terms of catching the price action to get on board, particularly the first 3 days, the levels have been accurate. However, if you did manage to get in trades, you should have had a soundly profitable week.
Have a good one today, wrap the week on a pleasant note and we will do it all again next week!
You may also like
