Good morning traders.
I mentioned yesterday that the levels I posted were to be looked at more as ranges as it was a bit unclear on the charts. This is something you should have in mind at all times, just sometimes more than others. Hopefully some of you had the ability to check the lower time frame when we were getting close. If you did you´ll have seen that 1.14 did the trick just shy of the the R1 level set at 1.1405.
A short here would have paid out our strategy +26 but you could have ridden it all the way to S1 for +60 ish (or more had you been so inclined).
On the bigger picture front, Brexit is now turning into Trexit (Teresa) and seems to be heading for the ´no deal´edge by the day. It is both farcical and utterly depressing what is happening in the UK at the moment and while I joke about it, it is deadly serious for its future.
Whatever the outcome, from our perspective it´s simply a matter of contending with its overflow on the eurusd.
So whats up for today?
The Daily Chart
Nothing really to say on top of what I´ve been saying for a month or so now. We are bounded it seems by 1.13 and 1.14. Maybe Draghi and the ECB presser tomorrow will help direction one way or the other. For today my guess is we will be looking to test 1.13.
The Hourly Chart
Regarding the levels being more accurately ranges as I mentioned yesterday, I´ve shown what I mean on the charts today. R1 could be anywhere between 1.1350 and 1.1363 as per the shaded area. Watch for reversal patterns in this area for shorts. Similarly S1 for longs.
Hard hats and gilet jaunes are not a bad idea as you enter these precarious markets where financial health and safety is more than ever the number 1 issue.
Until tomorrow amigos :).