The EURUSD remains in a narrow trading range (only 30 pips in total), but is moving back toward the lows for the day (and extension of the range too???). The average trading range over the last 22 trading days (about a month’s worth of trading) is 62 pips. So there is room to roam on an extension. The lows from last week is the next focus at the 1.2913 level.
Needless to say the price needs to extend above or below the highs/lows for the day – and then see momentum on the break. Since the large fall off the ECB stimulus announcement on Thursday, we have not seem much action in the pair. The corrective high did find sellers against the 50% of the move from the high price after the announcement to the low (see chart below). This shows the sellers willingness to keep control. The high today is lower of course, but the low is higher too. So consolidation with a bearish bias remains my focus. Waiting for the next break.
Technical Analysis: EURUSD stays in a narrow trading range
For a preview of the EURUSD levels for the week, watch the following video (first posted last night).