Forex Daily Market Report
As mentioned yesterday, bullish congestion bumping on 318 has been making trading difficult (at least directional trading). Fortunately, Kase remain very reliable in this environment, using our usual levels (30p/60p apart). Short 10p Kase are obviously more sensitive subdivisions.
No major change in outlook today, with more chance of exhaustion of buying pressure allowing a deeper retracement. 312 pivot should first hold, then let go to lower part of same trading range. Again, unless we see a push to a clear (D+) breakout (cf last reports), congestion is here to stay.
Similar story on USDCHF. Good short Kase swings, with 915 turning to strong support level despite momentary penetrations seen yesterday. However the narrowing of the range, and the bearish bias on longer time frames could the US$ further. At the same time, it is way oversold on (4H+), so even if one see an excursion south of 915 (pivot on longer time frames), a possibility of lashing back above 920 still exists.
GBPUSD is confronted to the same uncertainty although it may be easier to follow its behaviour on the current channel. 580 proved to be a good support to now aim back at 587 strong resistance. Strong and maybe too strong, so we shall monitor a possible profit taking trigger on channel breakout (on target for the more aggrssive traders), along with EURUSD and other major pairs. The Pound is massively overbought on (4H+).
( Posted 7:10 AM UK )
{ 0 comments }
