Good morning traders.
Trust you had a good weekend and are ready for some more range trading in the coming week (s).
The two things that have been dominating the economic headlines for the past few weeks continue. Brexit looks to be setting up for an extension which is generally positive for the cable and could help boost eurusd.
The US China trade talks also look like they are going to be extended with no clear signal which way they are going to go and no indication of how the US$ will react. I´m starting to think buy the rumour sell the fact is gaining traction. Just a feel at the moment but something to watch out for.
With regard to the eurozone there is nothing of particular significance on the slate for this week so we may well be in for more of the same within the 1.13 to 1.15 range. I´ll be watching how the pair opens Sunday to get a feel for price action on Monday.
Performance of our model strategy is updated here.
The Daily Chart
Actually its the Weekly chart we are looking at today – just for a change of scenery as you´ve all seen the never changing daily chart about 100 times now.
Whether it tells us anything new, I´m not sure. We put in an up move last week but all I can see here is the potential for maybe another move up this week to be then followed by a dip back. Until we have some significant technical indication or macro reason to break this range it looks like it still has legs to continue.
Maybe we will get a run down to the 61.8 Fib which has not been truly tested.
The Hourly Chart
Levels and Zones as per.
Watch out for a dip into the orange level at in S1 Zone at around 1.1325 as we have had a number of wicks through here and it is forming some minor support. Also be careful in R1 Zone as it looks to be tested and could break up and become support.
Have a good day and we live in hope of a break one way or the other :).