Good morning traders.
No follow through above 1.15 yesterday. However, while we hold above 1.15 and perhaps more significantly 1.1450 the risk is for more upside momentum. Dip buying remains the order of the day unless we break and get a daily close below 1.1450.
Re our levels yesterday we did get a bounce of 20 pips or so from S1 before the pair turned lower and used the same level as resistance. Good example of watching the price action and using the levels appropriately. So if you were on your marks there was money to be made from S1 on both sides. See 5 min chart below.
By the way the pink line on the below chart is a little known secret held only by the Illuminati (and me of course) that bestows great trading success on those in the know. Haha … you had me at ´secret´the word beloved of trade guru scamsters :). The pink line is actually the midnight New York price. I use it all the time in my scalping as its a great level to trade off. Think of it as a level similar to the GMT open level and add it to your charts. If you want any further info on it just let me know.
Little of note regarding macro news out yesterday but we do have US CPI data out today at 1.30 pm GMT. As this is a key data point for the US Fed vis a vis rates any significant movement from the forecast figures could spark some excitement across the USD complex.
The Daily Chart
The important point from the Daily perspective is that we closed again above 1.15. As long as we remain closing above this or 1.1450 we should be anticipating higher prices.
The Hourly chart
Levels as per. The levels have not changed from yesterday just re-numbered. Yesterdays S2 held overnight and now becomes S1.
Have a good day amigos and make sure you go into the weekend with a smile 🙂