FX pairs get over one hurdle then fall flat on their faces
So, pretty much we've hit the noted levels on the head. AUDUSD 0.7815 (13 high), EURUSD 1.2223 (high). GBPUSD 1.4217 (1.4220 high). That to me (for now) suggests pairs are just stretching their legs rather than making another big leg move. They're knocking out some recent intraday levels but not beating the next ones.
What's important now is where we set the support. If it's against some of the broken levels then we have an intraday range to play with.
EURUSD, as mentioned, looking to see how 1.2200 reacts on a test but the 1.2170/80 area is the main level. We watch the highs now to see how firm it is. If it breaks we look to the next level. Maybe the price is yet to find it's next proper high?
Why is this important?
I would wager that some of you, like me weren't in a trade and were perhaps watching this morning's moves while asking yourself where can I get on this bus?
Well, doing this type of price action analysis can help us get on the bus by having some patience and seeing what the price wants to do now. We can't trade backwards so we can only trade what happens now.
Want to be long GBP, EUR, AUD vs USD? Wait for the support levels to prove themselves and try a tight long (while being mindful of the highs for taking some profit), or go with a confirmed break of the highs.
Want to go short, lean on the highs if they hold again and nurse trades into the support areas, or go with a break if it looks clear underneath.
For me, I'm not that interested in cable at the moment but EURUSD looks more interesting trying a long into 1.2170/80 now that 1.22 has cracked. I wasn't keen on a break buy of 1.2180 because of what might have been around 1.22 but now I've seen it wasn't much, there's potentially some good pip margin if we have a 1.2180-1.2220/25 range.
What's important now is where we set the support. If it's against some of the broken levels then we have an intraday range to play with.
EURUSD, as mentioned, looking to see how 1.2200 reacts on a test but the 1.2170/80 area is the main level. We watch the highs now to see how firm it is. If it breaks we look to the next level. Maybe the price is yet to find it's next proper high?
Why is this important?
I would wager that some of you, like me weren't in a trade and were perhaps watching this morning's moves while asking yourself where can I get on this bus?
Well, doing this type of price action analysis can help us get on the bus by having some patience and seeing what the price wants to do now. We can't trade backwards so we can only trade what happens now.
Want to be long GBP, EUR, AUD vs USD? Wait for the support levels to prove themselves and try a tight long (while being mindful of the highs for taking some profit), or go with a confirmed break of the highs.
Want to go short, lean on the highs if they hold again and nurse trades into the support areas, or go with a break if it looks clear underneath.
For me, I'm not that interested in cable at the moment but EURUSD looks more interesting trying a long into 1.2170/80 now that 1.22 has cracked. I wasn't keen on a break buy of 1.2180 because of what might have been around 1.22 but now I've seen it wasn't much, there's potentially some good pip margin if we have a 1.2180-1.2220/25 range.