Mark Wogan: Powell Testimony Tuesday!

Good morning traders.

We had a quiet day (again) in our beleaguered pair yesterday. Nothing much to say while we are stuck inside this micro range within the bigger range!

If you were watching the charts we did get a trade from R1. If you traded it short from the middle of the zone I posted there was 20 pips to be had but there was no price action on the lower time frame charts to get excited about. Price went up to take out some minor wick highs at 1.1367 and stopped short of reaching even just a little higher for more stops above 70. This is pretty grueling trading! But, its part of the game so while we are here watch for scalps and take them:).

From a macro perspective equity markets across the globe backed off yesterday waiting it seems for some clear signal on the US China trade talks. With indices being so extended at these levels a pull back is to be expected.

For today we have nothing from the EU or ECB but we do have Powell later in the afternoon as he testifies to the Senate Banking Committee.

The Daily Chart

We have the 200 DMA and a trend line above at @ 1.15 and we have the range low and the 61.8% Fib below at @1.1280. Right now we are trading at the 1.1350 mark. If Chair Powell sparks some interest in the US$ either up or down we could see eurusd test these levels.

The Hourly Chart

Zones as per.

Support held again yesterday at the 1.1325 ish level and looks to be ready to test up through the highs of the last few days  perhaps up into R1. If it gets up to R1 and 1.14 look for a first test retrace short trade. Any dips back into S1 should be checked on the lower time frame chart to look for any bullish price action to signal a long.

Have a good day amigos :).