Trade the range....

E$ continues to consolidate within 1.3030/50 to 1.3160/80 ahead of the next stimulus. Could it be the German Factory Orders (6pm Sin/HK), German Industrial Production (Wed, 6pm Sin/HK), Spanish Bond Auction (Thu) or the upcoming G7 meeting starting from Friday? As far as the momentum indicator is concerned, it does not look like we are going to see a breakout in the next 24hrs. However, looking at this stage of the consolidation with reference to the order book, market seems to look more vulnerable on the upside as strong buy interest continues to build up with stop loss order on topside.
Nonetheless, I have come out with 2 possible scenarios for the week ahead:
Scenario 1: (Black color lines)
Consolidate within 1.3030/50 to 1.3180/200 before breakout on the upside.

Scenario 2: (Fushsia color lines)
Capped below 1.3110/30 and breakdown for 1.2960/80 before rebound.
This is a low probability scenario.

Europe order book:
Stop loss: 1.3100 and 1.3180
Limit: 1.2980/70, 1.3020/00, 1.3050 and 1.3130/50

Primary trend: Bullish
Intermediate trend: Bullish
Minor trend: Consolidation before rally

Technically, indicators are mostly at neutral zone and momentum indicator is suggesting range consolidation with a slight downside bias at current level (1.3078). However, considering the expected range for today, risk/reward favours staying long here with a tight stop.

E$ 8-hourly chart - Consolidation before rally