Markets, Euro crosses in particular, are trading in violent ranges. Such conditions aren’t for everyone but nimble traders can take advantage. All ideas are posted via Twitter @JamieSaettele.
The EURJPY has backed off of the highs after exhausting post 8:30 US data. Given the extreme momentum readings at the high (Monday), more corrective activity is probably needed. Markets can correct themselves in time and price. In other words, it’s possible that price contracts into a triangle. I’m short from this morning and looking towards 11850 today and 11750 tomorrow. Watch the ‘50s’ in this market. 11650 (low was 11646), 11750 (yesterday’s close was 11743) and 11850 (pivot this morning in Europe was 11841) are all levels to consider for managing the trade.
The GBPUSD trendline break has me looking towards the November low at 15822 and the 4 year (has it been that long?!) trendline near 15700.
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
To contact Jamie e-mail firstname.lastname@example.org. Follow me on Twitter for real time updates @JamieSaettele
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Jamie is the author of Sentiment in the Forex Market.