24/02/10 EUR/USD March 10 contract:
Price is pretty much range bound and drifting sideways.I've used a 30 min chart to mark of the range because it is easier to see.
As you can see the Euro sold of rather nicely yesterday and made its swing Low at 1.3500(nice double 00 figure) Its previous swing High was at 1.3580. Now since price is neither making new swing highs or new swing lows I would define it as Range bound. So the range is marked off and its time to sit on hands and wait until there is a break out. Price did poke out for a cheeky false breakout at around 20:30 last night.
GBP/USD March 10 Contract:
As boring as it might be GBP/USD in pretty much the same situation.
There was the big sell off yesterday on the back of King and the BOE statements and now the market is drifting sideways. It is very easy to look to the left of the chart see the big moves and feel that the range isn't valid or that its an 80 tick range so there is still plenty of potential to scalp within it. However price is caught between its previous swing high and low and until it breaks out the market will chop around within this boundary so for me the kettle goes on and it becomes a waiting game.
10:48 False break out on GBP:
Price on the GBP just pokes its nose out of its currents range signaling the possibility of a Long trade.
dropping down to a lower time frame, (I use a 2 min but thats just my preference) We can see MACD has also made a bullish cross. This gives a nice suggestion that buyers are entering the market and confirms a Long entry for me. I place my entry above the breakout high so in this case 1.5480 (this guards against a false BO) yet before that order triggers MACD crosses again bearish and the trade is canceled. Price drifts back into its range. Back to waiting
No comments:
Post a Comment