True enough, the range just got tighter and even more than I expected. This is really leaving us with not much room to trade with the appropriate risk/reward. Clearly market is awaiting development out of the eurozone leaders' meeting from tomorrow. For the past 9 days or so, majority of time had been spent trading roughly within 1.2260 to 1.2360, which is in the higher band of the recent range after the rebound from the 2 important lows at 1.2042 and 1.2134.
Stop loss orders can be found at 1.2240, 1.2305/00 and 1.2386/92.
Technically, as a result of price action spending more time hovering in the higher band, momentum is starting to turn from consolidation to slight upside bias. That being said, E$ desperately needs to recapture and trade above 1.2400 by this week or the weak weekly momentum may pressure E$ towards 1.21ish in the days ahead. I remain sidelined for now and will not be too quick to jump in on any break just yet. Just have a strange feeling that market may whip both ways to clear all stop orders lying just outside the range before it turns to where it wants to go subsequently.
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| E$ Hourly chart - Consolidation continues |
One of the keys to successful trading is to know when to exercise patience and to react only when market unfolds.
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