Mark Wogan: Turnaround Tuesday ?
Good morning traders.
Eurusd stuck to a 30 pip range yesterday and didn’t trigger either S or R levels. We did however get the chance of a couple of scalp possibilities if you had the stamina and were attentive enough to hang around. This is our lot I´m afraid right now in the pair as this low ATR (average true range) phase continues.
Risk on is clearly the order of the day in US indices with the SPX making another push higher on the back of rate cut expectations, the Mexican tariff stand off being resolved (probably) and the ´hopium´ of a deal with China or at least some optimistic comments coming from the G20 where Trump and Xi could meet up for another game of Liars Poker. ATHs look to be in danger! At the same time the USD is struggling to keep the 97.00 level.
We have US PPIs this afternoon at 14.30 CET and nothing much else on the data slate. In fact this week is pretty quiet until Friday when we get US retail sales.
Apart from that there’s not much to add. So as when there’s nothing to trade we do nothing, the same goes – if there’s nothing to say I say nothing :).
OK, roll the dice again….
The Daily Chart
The daily printed another close above the 1.13 level and the declining trend line suggesting some resilience in its efforts to test higher. I think its more about the USD than the euro right now as the former comes under pressure from mounting Fed rate cut expectations. Levels on the upside are the Friday high at 1.1350 before a clear run to 1.14 (with perhaps a stop at 1.1380 on the way to test its commitment).
The Hour Chart
Levels as per.
I´ve kept the S & R1 levels tight in to price this morning to hopefully get a trigger. I’ve not said it for while but you all know the score with S becoming R and vice versa so watch out for any breaks and the same happening today.
If there’s not much to add for tomorrow I´ll probably leave it till Thursday before commenting further.
Tight lines (fishing analogy nothing to do with levels lol) and have a good one.