Extends weeks trading range
The EURUSD has pushed to new week highs in trading today. With the first 3 days at 68 pips, that was not hard to do. The range is now 86 pips. Yippee. The sobering news: that still represents the most narrow trading range going back to August 2014.
We have done this exercise before. The records are NOT meant to be broken, nor should we bet on them because most times, the low ranges for a week, are extended by the end of the week. To give you an idea, the low range for a week in 2015 was 124 pips. This year it has been 127 so far. Is there room to extend the range? Yes. The buyers pushed the upside today.
In trading today, the clue was taken early with the move above that pesky 1.1356 level (50% of the move down from the May high). I know it has been the same story all week (broken record), but the longer the market hangs around and goes no-where, the better chance it moves away.
Looking at the 5 minute chart, the pair got a kick higher after holding 1.1360 twice and 1.1363. A break was made and the steps higher began. The correction of the trend move higher has held the 50% which good for the buyers. They showed up when the pair went on sale. That level will be eyed (as will the trailing 100 bar MA on the 5-minute chart -blue line). The traders can get disappointed quickly so watch these levels below to gauge the sentiment. Needless to say moves below and then below the 1.1356 will have traders thinking about the lows. We have to stay ambidextrous when the ranges are narrow. That comes on failures....
ON the topside, the high stalled at 1.14101. The 1.14175 level is the 61.8% of the move down from the May high and was the next upside target. The 1.1435-65 is another key target.
We are back above 1.1400 now, with the 1.1417 eyed above.
