Good morning traders.
Such is the volatility and rapidly fluctuating nature of the eurusd pair at the moment I could copy and paste exactly my words from yesterday and they would be just as valid for today. Levels and zones included.
That gives you the clearest indication there is that our pair is stuck. Stuck in the 1.13 to 1.15 range and stuck with low volatility while traders figure out what to do next.
Until we get some significant macro view change I doubt anything much will happen. However, the old saying in trading is that contraction and consolidation lead to expansion. So when something does come along to unlock the pair we should get some real action. Until then we trade the range.
That said, yesterday was a pretty good day for our trading. We got a move up out of the S1 zone early in the London morning session which went almost exactly to our R1 level at 1.14 in the middle of the R zone and backed off for the rest of the day.
Depending on how you played it there was around 20 pips on the up move and 30 in the down move. Not bad for such a sluggish pair. You just have to know how to trade the conditions. We cant always have fast moving markets. We are traders therefore we adapt to what the market gives us!
For today we have German and French CPI´s this morning and US GDP this afternoon.
The Daily Chart
What can I say?. Its the same as yesterday :). It didn’t close above 1.14 though which looks like the cap at the minute. So, maybe we will test down the chart today.
The Hourly Chart
Zones and levels as per.
Trade the price action zone to zone while we are in this indecisive period. One day we will get a breakout but until then – steady as she goes.
One thing that does stand out on the hourly is the clean double top at 1.14. We may get a test up to take this.
Have a good one and try to control your surging emotions as we ride the roller coaster that is the eurusd :).