Good morning traders.
While I was away from my desk yesterday trying to avoid bunkers of another sort the eurusd would have had a few long balls trapped itself. I suspect many were long from the off yesterday morning or even from the post FOMC position overnight Wednesday and felt some heat as we dipped back into the 1.1250s for another confirmatory retest.
Alas we should not have been so troubled by this as a dip back into the 50s was what we were expecting. Consequently we had a +26 model winner. Just wish my golf had been so accurate :).
For today there is little on the data slate and as it´s Friday and it feels like it´s been a long week I will be very selective to end the week on a high note. Never any point being a dick for a tick as they say – especially on Friday´s.
The 240m Chart
As I write we are holding just above yesterday´s highs at 1.1287 and the upper prices of 1.13 and above remain in putting distance. Whether we break above and hold or test the big fig and pull back is the likely story for today. The 4h chart clearly shows the 50 level as a major inflection point but we need to drill down a little to see what other levels could provide support for today.
The Hour Chart
Levels as per.
The key R & S zones remain the same as yesterday. The move up is not proving to be slam dunk just yet so I will be watching any dips back to the 80, 70 and 60 levels as noted on the chart as possible minor support for any scalps and or reload of long positions. The other option is that we push higher right from the off.
Of course we need also to be mindful of not much happening today or even a stronger reversal as the 97.00 level on the USDx is proving resilient. As always watch the tape. The only thing that matters is what the chart tells us.
Care is the key word for today to ensure we carry a decent week into next.
Have a good day and enjoy your weekend.
See you Monday :).