Good morning traders.
Well, yesterday certainly got the medal for the most untradable day for quite some time. I said it was likely to be a bit choppy with not much happening prior to the ECB tomorrow and that’s exactly what we got. Chop city!
I suspect today may be the same while the single currency waits for direction from Draghi. If that is the case – might be best to just sit it out. Sure you can trade the levels but just don’t take any big risks or positions until we get more clarity.
The Daily Chart
Not sure there´s much to say other than repeat myself. We got a standard doji yesterday which can be either bullish or bearish depending on where it is formed. In our case I´d say its neither in that it simply reflected an indecisive day. We are still potentially looking lower but barring any ramping of risk off flows to US$ safety today – as said, Draghi will lead the way tomorrow.
The Hourly Chart
The double bottom held yesterday which I suspect will have got a fair few on the wrong side fully expecting a break below. The fact it held could be significant but best not to put too much weight on it till after the ECB. We have the same levels as we had yesterday so I will say no more.
I will be away now until next Wednesday but you know the score – trade the levels, its all about the levels!
Have a good day amigos.