Good morning traders.
After Wednesdays excitement courtesy of the Feds Powell, we had a range bound day yesterday with the eurusd staying within a 50 pip or so range. 1.14 remains in tact at the moment at the top and 1.1350 below. Whether or not the Fed chair actually did give a nod to a slightly changed and more dovish stance is debatable but the market took it as such and that´s all that matters – for now.
As we have the G20 junket in Argentina this weekend, we may stay fixed somewhere between these levels for today barring a trip above 1.14 just to test the air I suspect.
In terms of macro developments nothing to add to yesterdays piece. Brexit, Italian debt, Fed rate paths are all still impacting the pair but its all about Trump and XI at the moment and whether they can settle on any plan to kiss and make up!
So what’s up for today?
The Daily Chart
Nothing to add to what I said yesterday. From a technical standpoint, the inverse head and shoulders is still in play and until we get any information to suggest otherwise, it’s prudent to go with the flow. Next week should clarify the situation.
You know the saying – stay long until you´re wrong, or short till its not! 🙂
I would also note that from a seasonality viewpoint we have a strong historical trend of the euro gaining into year end which may add weight to higher prices.
The Hourly Chart
Again, as yesterday, we have fairly clear support and resistance on the chart with some clear levels to look for trades. It´s not clear to me where we might be headed today so, as ever, I will play the levels noted.
Incidentally, while I fix my hourly levels at the start of each day to give me a steer and a basic plan of action, I am always watching for intraday S&R levels than set up based on evolving price action. If a level becomes clear, for example 1.1365 –1.1370 yesterday, use it for scalping if you are so inclined.
So to round up the week, I wish you all a great weekend and I´ll see you all bright and early Monday.
Hasta luego amigos.