Extends trading range for week/month
At this time yesterday (see post), the range for the trading week was 140 pips. That would have been the low trading range for the year if it stood up. Not likely. The FOMC was looming. It was about what the FOMC would say. Would they say "September". Well, the Fed did not say "September" (according to dots 7 of 17 thought September - not that convincing a number). The price moved above the 1.1329 high for the week. And the low price on the hourly chart after breaking above the 1.1329 high was 1.13283. IN other words, what was resistance became support.
Today, the range for the day is 92 pips (being extended even after better Initial Claims. CPI ws a touch weaker). The average range over the last 22 days (about a month) is 148. The move higher today, has extended the months trading range. The double tops (roughtly speaking) at 1.13791 and 1.13856, are now close support.
The 1.1378-88 area is the 38.2-50% of the last move higher and will be a support level to eye in trading today.
Overall, the range is light-ish. The support has held. The range has extended but there could be room to roam if the support holds. The buyers remain in control.
Looking at the daily chart, the 1.1448 level is a trend line connecting Feb and May highs. The high in May was 1.1454. The high in February was 1.1533. The 50% of the move down from the Dec high comes in at 1.1515. There are other swing lows and highs at 1.1454. Those are the next upside hurdles given the bullish bias continues.
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