Good morning traders.
Not much to say from yesterday other than we had little action in the eurusd for most of the regular hours trading session where we stayed within a 20 pip range. We then got a dip lower later in the afternoon to extend the range to 40!
The action was all in the indices where we had what seemed like major event but in fact was nothing more than a normal corrective move. We are so used to continual bullishness that anything that extends lower for a full day without a BTFD rally seems like the harbinger of doom and misery. Who knows it might well be but a few handles lower needn’t get people heading for the windows just yet :).
There´s not much to add to what I said yesterday with regard to our beloved if somewhat sluggish pair so I will leave you with the charts and let you get on with business.
The Daily Chart
As you can see we are now at the bottom edge of the triangle we mentioned yesterday. If we are going to bounce up this is the place to start. If that’s not the case watch for a break below and a pullback to test the bottom edge to try a short. Just look at the ATR – 35 – pretty soon it will be equal to our stop lol.
The Hour Chart
Levels as per.
The close yesterday tagged the 50% retrace of the most recent swing which again adds confluence to the pattern on the daily I have just mentioned. I have left the levels as they were as they represent the best levels where we are likely to see a reaction.
Remember the first touch is always the best trade so set your limits and let the chart to the work. There are some decent scalp levels above notably the 1.1180 and 1.12 levels so if you are so inclined, have a shot.
Unless there is anything significant to report tomorrow I will probably not bother with a morning update. But you know the score by now – just do it.
Have a good one amigos :).