Good morning traders.
I´m scratching my head here trying to think of something new to say about our illustrious pair as it continues to nudge south in this interminable range. Unfortunately I can´t so I will be brief.
It´s not so much the longer term range that has been the problem this past couple of weeks, on the contrary, it gives us clear directional bias, its the lack of movement. Yesterday we spent most of the day within a 20 pip micro range. We again did get a bit of action late in the London session for a dip below 1.1380 but the previous 7 hours were deathly quiet!
From a model perspective we at least did trigger a long from S1 about which I sent out an update stating that stops should be brought to break even once we were +10 in profit and that I will count this as a scratch trade for our performance.
There´s nothing much on the data slate today apart from any blow back from PM May’s Brexit discussions with Juncker and Tusk.
So, will volatility kick in and we get some fast and exciting price action or will we get more of the same? Let me think ….. yep more of the same is my guess.
The Daily Chart
Nothing to add other than to say 1.13 looks to be in the headlights.
The Hour Chart
Levels as per.
While we are trading this slow down move it makes sense to be looking for shorts rather than longs. In which case we need to be looking for rallies to sell into such as any move back up to 1.14 (R1) or a move up to the downward trend line noted.
I would be careful of taking longs but if you do I would manage them tightly and consider taking profits early, taking partial profits and / or moving stops to break even early in the trade. While I suspect some bounce from our support the trend is clear so shorts are preferred. As the trading adage goes – we are either long till we are wrong or short till its not! For now the latter applies.
Have a good day dear reader :).