E$ was pretty well behaved yesterday until rumour of a French ratings downgrade drove price down to 1.3069 low. This kind of choppy price action is expected especially when market is trading within a tight range. Despite all the noise, E$ once again closed firmly above 1.3100 at 1.3137. This is a bullish signal but not to be read in isolation.
I expect the E$ to continue to hold the range of 1.3055/65 to 1.3200/20 and a break and close on either side will show the way in the coming week. That being said, after taking all available signals into consideration, I see a slight skew towards a potential break towards 1.3300 (see chart).
Stop loss orders can be found on either side but gathered that the large bulk is residing at 1.3215/20.
For today, 1.3090/110 to hold (1.3055/65 news induced) and 1.3200/20 to cap (conservatively).
Not too sure how much uncertainty IMF's meeting, over this weekend, has on the market but take profit if you have a decent gain within the range and enjoy your weekend!
It is never wrong to take profit ahead of your target. But it is a cardinal sin if you allowed the market to erase off all your gains!!
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