Mark Wogan: EURUSD – Up, down or sideways – all the same to us

Good morning traders.

I mentioned yesterday we were looking for higher levels in the eurusd pair and that’s what we got yesterday afternoon – albeit not for long.

After a quiet and tight range bound morning session the pair woke up, made a quick run up to 1.1620, a level we had on our charts and the first upside target I said I was looking for and just as quickly made a run back down, obviously not keen on the thinner air up there 🙂

The problem was that it didn’t give us much by way of pullback or price action in the morning for us to get on board. Pretty much the same as the Monday session. If you were long all well and good but I suspect most weren´t. No worries though, another day another dollar as they say. However, it was a great place to short it and again we had it marked!

Todays Charts

EURUSD Daily Chart

Looking at the daily chart I´m in two minds whether we are looking for further upside or heading down. The sharp pullback from 1.1620 suggests to me a short term roof might be in but overall we are still poised also for higher prices while we stay above 1.15. While I´m uncertain I´ll play the levels on the lower time frame charts and see where that takes me.

As traders we shouldn’t care whether it goes up, down or sideways as long as we know where we want to trade and the risk reward stacks up. Sometimes when its uncertain (haha – it is always uncertain but you know what I mean) when we don’t have a real bias one way or the other on the higher time frame, we have to be prepared to take both sides, embrace the risk and see where it goes. It´s trading!

EURUSD Hourly Chart

On the hourly chart the downside levels are pretty clear and Ill be watching for reaction here. To the upside we have the 1.1570/80 area and then the 1.16 big fig and 1.1620 top from yesterday. These are the areas and levels I´ll be watching on the 5m chart to see what type of price action we get, if any patterns form and whether we get any good risk reward entries.

Not much on the data slate although keep an eye out for any headlines from the European summit and or later out of the FOMC  meeting minutes.

Up and at ém!!