Mark Wogan: EURUSD – Might go up, down, or sideways!

Good morning traders. Trust you had a good weekend and are ready to lock horns again this week

First thing to note is that Friday saw our pair close back above the important 1.15 level – albeit only just. Still a close is a close and it was on the upside of the big fig but I can’t say I´m certain where from here. It could go up, down or sideways!

We do, however, have the ECB on Thursday which may unlock the direction a little depending on what Mario Draghi says at the presser after the rate announcement.

If we get any language change on rate policy commencement or otherwise from the end of next summer it would certainly stir things up. I guess until then barring Italy headlines we´ll be stuck in a range. In which case all we can do is to watch out for clear levels and areas where we have a good chance of a reaction, check the pa on the ltf charts and trade accordingly.

The EURUSD Charts

EURUSD Daily Chart

There is not a great deal I can add to what I´ve already said over the past month because we are still within the broad 1.15 – 1.1750 range, although we do look like we are close to a break to the downside. You can see from my chart that the lower range level appears to be forming resistance at 1.1530 ish. Alternatively we may have just put in a double bottom at 1.1430 and higher prices could be on the cards. I´ll be watching the Sunday open and the Monday session for clues.

EURUSD Hourly Chart

On the hourly chart the levels are pretty clear on both sides and as I have no real feel for long term directional bias I’ll be waiting for price to get to one of these levels, watching the 5m chart and jumping in long or short depending what the ltf pa gives me.

Not much else to add for this morning other than to say keep an open mind, scalp both sides and let the picture clear.

Have a good day and see you tomorrow 🙂