2nd week of the year we are watching E/U trade range bound. Until we can break out of the range be patient. Dollar is typically strong to start the year, so that will have a dampening effect on the momentum from last year. This should show signs of loosening as we get the 2nd half of Jan. beginning of Feb. Still expecting choppy with a favor to the downside due to seasonality.
Comment:
News releases this week could not break and hold the low or the range. We are now at the top of the range at the end of the week looking cautiously as seasonal dollar strength can still take the wind out of the sails. Upside break looks like it might hold observing the upward leaning channel that appears to be forming with the higher lows. We will have to see what next week does before we can be confident the momentum from last year has returned.
Comment:
This week started out with a strong dollar push which was confirmed today by retail sales numbers. Sticking with the January theme of strong dollar. We will continue to short tops until we reach near-term support @ 1.08 which also is the central pivot point. Then we expect another bounce and continued weakness into the month close.
Comment:
Seasonality is still in focus this week as last night's news followed through with expected weakness. We still are targeting the 1.08 area, but we are now bringing down position size and trading cautiously as we come closer to month close. With the high impact news releases coming next week top of mind. We will continue to short tops for the next few days but, we are taking profit as soon as a new low is made, and we are not taking any pullbacks from new daily lows.
Comment:
1.08 target was hit today. Now we will wait patiently for the red news this week to be incorporated to see what we will plan for February.
Trade cautiously.
Trade cautiously.