If it wasn’t for the pips I’d get a bit sick of posting the same old picture in GBP/USD and EUR/USD
GBP/USD H1 chart 17 12 2014
EUR/USD H4 chart 17 12 2014
Range trading can be fun if you’ve got the patience to wait for the levels to come to you and not chase them. Psychologically though, the longer they run the more anxious you get that a break is coming.
For cable, we confirmed falling back into the range after it held the 1.5735/40 area after dropping to 1.5715 yesterday. For this pattern to continue I’d like to see it have a look lower first down towards the low 1.56 area or the risk is that we do finally see a proper break up. The dip under 1.57 was hoovered up swiftly so the bias is looking higher right now. If that’s the case then either keep a tight stop on fresh shorts or set your stop on a break of 1.5800. Fall back below 1.5700 and we risk a further drop.
The euro can’t buy a big move for love nor money, even with the volatility around the dollar and elsewhere. Being back below 1.2500 makes it hard work again and I’d like a look lower in this pair too.
The FOMC tonight could give FX markets a last hurrah before markets really start to slow down into the holiday period. For longer term traders tonight could be a big opportunity to grab any big moves that counter the current trends but you have the risk of running trades over the xmas break.
