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Good morning traders. Trust you all had a good weekend.

Last week was a solid down week for the eurusd as we expected. But that didn’t make it an easy week to trade as we got little action to trade off from our model strategy perspective. Basically you had to be short last Monday and in for the ride down or scalping previous days and or Asia session highs and lows.

Whether we get the same this week is debatable but with nothing on the data slate for today we are not likely to get much of a tell either way until tomorrow when we get Weidmann of the Bundesbank speaking. Similarly Wednesday when the US prints CPI data should give us more of a view of the short term at least.

But the bigger picture for the eurozone does not look healthy. If we continue to get poor data we could be looking at the ECB having to step in but with what as they have a limited arsenal of options. Interest rates are already negative and there´s not much to show for their QE initiatives.

We are at critical levels in both the USDx and the eurusd but all I can say is that the trend is in place so we continue to follow it down until anything tells us to do otherwise.

We had nothing to add to our model performance last week so week 1 Feb kicks off with a scratch result. I will update during the course of the day. Lets hope we get some action and some decent trades triggered this week.

The Daily Chart

From the daily chart we have not had such a solid down week with a lower close everyday since last May. In which case we could be in for a reprieve of sorts but the trend is clear. A move up and a close above the 1.1350 would help the ´bullish´ case.

The Hourly Chart

Levels as per.

If you are able to be at your charts I would suggest that you ´scalp´the highs and lows as noted above. When I say scalp I´m not taking it in the technical sense of entering multiple trades for a few pips either way I mean taking the levels and the short time term price action highs and lows (previous day, Asia session for example) and managing them closely for short term gain.

Have a good day and lets see what unfolds today.

 

 

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Mark Wogan

Hi. I started my investing / trading career in 2000 and since 2011 I have been trading on a full time basis.

My focus here will be the currencies and in particular the EurUsd pair and I will post my charts on a daily basis marking up the levels I´m interested in and comment on the bigger picture context and anything else I´ll be watching out for during the day.

I also do a little coaching on a one to one basis so if you´re interested in learning how to trade just give me a shout and we can have a quick chat.

https://www.markwogan.com

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