Good morning traders.
ECB rates decision at 1.45pm GMT (no change expected) with the Draghi press conference at 2.30pm.
Nothing to add to macro views – see here for a refresher.
As we are likely to get some whippy action with our eurusd pair today I suggest you wait until after the press conference before entering any trades. Or, if you cant be at your desk, wait until tomorrow when the dust will have settled somewhat. At least I hope there will be some action that stirs up the dust as its been particularly lethargic this week.
We had a short trade from R1 yesterday which I tweeted and commented on here in the comments section of the blog. Due to the time it triggered and the price action and noting the USDx price action (which I wrote about yesterday) I managed the trade as a short term scalp rather than let it play out as per our model strategy rules (see here).
With regards to levels and charts for today here we go.
The Daily Chart
There is nothing I can really add to what I´ve been saying for the past few days with regard to the chart. The 1.1360 level seems to be holding the downside on closes for now.
This is a significant level and has acted as a pivot since the range started to form back in October of last year. If we continue to close above it would suggest to me that then pair is looking for higher prices. In which case a close below would be important.
The Hourly Chart
I am not marking up any S & R 1 to 3 levels today due to the potential for whipsawing on the ECB announcement and press conference. I have drawn them in on the chart for information but I think its wiser to wait to see what happens before taking any trades.
Lets hope we get something from Draghi that helps us to move out of this range although as mentioned yesterday we might have to wait for the FOMC next Wednesday to get a clear picture.
Have a good one amigos and make sure you don´t get caught out in the open when Draghi starts to speak:).