The much anticipated event of the week is finally here and what is there is store for us?
Overnight, low was 1.2445 and market is in the process of short covering ahead of the EU Summit. High so far had been 1.2524.
The latest stop loss update revealed the following: 1.2600, 1.2550, 1.2425 and 1.2400.
On the technical front, the longer term momentum have turned to consolidation to up. However, shorter term indicator is at o/b territory though not extreme.
Basing on the above, I believe market should start to get suck back into the range of 1.2450 to 1.2530 for now. But what is more significant is the baseline is now risen from 1.2340/50 to 1.2390/400 and the probability of the retesting the recent low of 1.2288 is lower. The higher band of 1.2560/600 to 1.2650.
Scalpers, be warned that for today and tomorrow, market will be exposed to more random news impacting the price action which will overwhelm technicals. I prefer to position my entry nearer the boundaries for a better risk/reward payout. In the same vein, it is favouring a buy dips strategy for today.
Just remember, whatever you do, always have your stop in place..... even before you leave your desk for a toilet break!
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| E$ Daily chart |
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