Good morning traders.
I mentioned yesterday that we needed to be on the lookout for a push back up in price on ´turnaround Tuesday´ and that’s what we got.
The term ´turnaround Tuesday´comes from the equities world but its a useful concept for currencies as well. Often after a big move in one direction on Monday we get a reversal of sorts the next day, hence ´turnaround Tuesday´.
We came all the way back to retest the 1.1320 level which is the monthly open level and the point of origin of the big push down through 1.13. We have subsequently moved back down overnight in the Asia session to the first support at 1.1280s. Do these levels ring any bells for you?
They should. I mention the 20s 50s and 80s levels all the time.
That’s because they are so sensitive to price action and always need to be watched carefully.
So what up for today?
The Daily Chart
As I´ve had to say for the past few days, there is not really much to add to my past few diary entries as the situation remains the same. 1.13 is still a critical level with 1.12 and 1.1190 the first two levels of interest below (on the daily timeframe).
The Hourly Chart
Resistance 1 = 1.1310 to 1.1320
Resistance 2 = 1.130
Resistance 3 = 1.1350s
Support 1 = 1.1285
Support 2 = 1.1270s
Support 3 = 1.1250s
Support 4 = 1.1235
Now we have put in a couple of days price action we have some good levels to work with. To the upside we have resistance 1 (R1) coming in at around the 1.1310 to 1.1320 level with R2 at 1.1330s (the weekly open level is another level I always have on my charts) and then R3 at 1.1350.
Below current price (as I write 1.1290) we have support 1 (S1) at 1.1285 with support 2 at 1.1270s and S3 at 1.1255. Support 4 is at 1.1230s
I don’t know what direction we are likely to get today but I do know that any trades I take long or short will be at these levels.
I keep on saying this but it’s all about the levels – nothing more nothing less. I find it difficult as a day trader to pick direction intraday so why bother?
Just trade at the levels, have a clear money management strategy for entry, exit, stops and profits and do the job.
If anyone wants to trade exactly like I do – give me a shout anytime.
Have a good one.