Stuck In The Middle With You – Do You Wanna Trade The Range?
After trading sideways yesterday, we see that most of the forex majors are still stuck in a range. EUR/USD is stuck within a 30 pip range, but the price action of the last 30 minutes or so tells us that the downside is in danger. However, the 200 SMA is holding the price afloat on the H1 chart.
Nevertheless, I still wouldn´t look to buy. If I´m to open a short term forex signal in this pair, the best options are near 1.07. The decline from above 1.09 has been too fast, so we might see the price bump a bit when we get there.
The GBP/USD range is even more visible. The price is ping-ponging between the 100 (red) and 200 (purple) smooth moving averages on the hourly chart.
Right now we are at the bottom of the range and the 200 SMA is holding the price. Do you want to go long here for a 25-30 pips target?
The 2 MAs are confining GBP/USD this morning
The stochastic indicator is oversold and RSI is getting there in a moment, so do you feel brave enough?
According to the H4 forex chart, the real support comes about 20 pips lower to 1.2390 where the 100 SMA awaits, but that´s a decision we have to make. Go long now with a short term signal/trade, wait until we slip another 20 pips, or just stay out of it?
We have our NZD/USD signal open and we just went long on EUR/CHF once again, so we are staying out of this one for now. But, this is not a good level to consider opening a small long. What the hell, we might as well go long on the GBP/USD pair as well.
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