Good morning traders.
Not much to do yesterday other than to take the long from the S1 we had on the radar. Even though it was another slow day it managed to give us enough to post a winner. I wont count it as a +26 model result as I assume many would have entered around 1.1285 the mid point of the zone rather than the low edge at 1.1280 so I will count it as a +20.
I posted an update on twitter yesterday around 5pm CET to suggest anyone still in the trade closed out to ensure a winner. There is no point in these lacklustre conditions allowing a good trade to go bad :).
With regard to entries in zones as a general rule I always look for a round level if its possible such as 20s, 50s and 80s as we know these levels are decent reaction points.
We had another test of the 1.1280 level again overnight which suggests that prices may be looking above 1.13. As I write we are trading at 1.1305. If you are looking for a scalp entry watch for any pull backs to the 1.13 and 1.1290 levels.
A tranche of decent China data overnight added to the generally positive risk on tone and may help the USDx to back off the 97 handle.
For today I suspect we are in for much of the same type of price action. I keep hoping that the trading maxim of contraction leading to expansion will kick in at some point but it continues to disappoint.
However, these slow conditions (ATR is below 40 on the daily chart !) are not as detrimental to trading as many would have you believe. While we dont get any runners or many entries the fact that there is little conviction tends to make the good levels high probability entries. So its just about being patient. Trading is mostly waiting :).
Nothing much on the data slate for today although we do have EZ final CPI´s at 11.00 CET which if they post a decent beat or miss could help to spur us along one way or the other. We live in hope.
The 240m Chart
Nothing to say that we haven’t already said. The levels are clear. The 1.1350s look enticing if we can get a clean break above the 1.1320s. We will undoubtedly find out soon enough
The Hour Chart
Levels as per – the same as yesterday.
If we do get a jog on in either direction then make sure that you are watching not just for reverals at our levels but also for S to become R and vice versa.
Have a good one and remember patience is a virtue and an absolute necessity in this business.