Good morning traders. Following yesterdays diary entry our working plan for higher prices followed through. After the Sunday night open prices came down to within a couple of pips of our level on the hourly chart (see point 1) and moved up from there to break the 1.18 level and the Friday highs.
We then got another entry point at 2 if you missed the entry at 1. Dependent on your trade management there were around 85 pips to the upside. Hope you got some!
EURUSD Daily Chart
We kick off this morning (7.30 CET) with price testing the top of our Daily range and the lower TL on our H1 charts. Should we get a clean break of the TL on the hourly and 4 hourly I´ll be watching for a retest from the underside which might signal a further move down in price.
This is not to say our working plan for higher prices is invalid, more that we might get a more sustained dip to downside to shake out any weak long hands in the up move. We have the FOMC on Wednesday evening where a 25bps rise is already firmly priced in, but the event risk could still be a catalyst for downside targets in the 1.1680 / 1.17 range.The Feds commentary associated with the likely rate move will be instructive.
The structure of the charts continues to suggest higher prices in the pair but this week (especially up to Weds eve.) might see some consolidation or downside before a resumption in the move up. As ever, flexibility is key!
EURUSD Hourly Chart
Have a great day!
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.