Good morning traders.
Some action at last in our beleaguered pair although only really due to the boost when ´sources´ mentioned that US auto tariffs may be delayed 6 months :).
At the time of the announcement we were trading at 1.1185 and got an instant boost to 1.1220. The Dax, if you were watching, spiked 200 points in a few seconds! While its risky stuff once Trump starts tweeting or getting ´sources´ talking at least it sparks action in otherwise legargic markets.
Personally I feel very uncomfortable once we get past 12.00 CET as I know the tweets will start and anything can happen. Fortunately (or otherwise) I was not in any Dax trade so wasn’t caught out or unexpectedly rewarded although I did catch some small change off shorting the initial spike.
On a side note when we get spikes like this its usually a good trade to fade the initial spike should it reach a decent chart level you already have in mind. You have to be quick and not outstay your welcome but the first shot probability is on your side as most fast spikes fade in the first instance. The only time not to do this (should you ever want to try it at all) is on central bank policy news. These trades tend to stick.
In other news, as I mentioned, yesterday was a day for scalping and said to try a long from 1.12 on first test. If you did it should have paid out but only 10 pips or so. And if you were in a long position at the 1.1180 ( a level we all know is usually a good place to trade at) you should have had a decent day courtesy of Trumps sources :).
For today we don’t have any code red data so its a case of firing off at the right levels. The Bundesbank’s Weidmann is speaking at 10.15 CET which could impact price action.
The 240m Chart
The levels we were watching played out and we are still consolidating around the 1.12 level. The trend line I have on the chart seems to be at best a minor factor but it is helping to hold price above it at the moment.
The Hour Chart
Levels as per. I am neutral either way while we stay where we are and trading as I see fit in the context of the days price action.
Wish I could suggest a direction of travel with any conviction but I cant. We know the levels above and below price so its a question of sticking to the plan and trading accordingly. Things will liven up ….. one day:).
Have a good one.