Intraday traders define some boundaries
The action was on the opening and in the Asian Pacific session. A gap lower led to sent the longs scrambling. That was followed by the snap back rally. The London/European session has seen a lower perspective but up and down as well.
The market has defined boundaries, it currently trades between the boundaries and will likely take clues from polls, stocks.
The close boundaries have the 1.1073-84 area as the topside resistance. The 100 hour MA (at 1.1084), the 200 bar MA on the 4-hour chart (at 1.10766) and a broken trend line at 1.1073
On the downside, the pair has stalled at the low from Wednesday at the 1.1048 area. A move below that level will target 1.1029 and then the 200 hour MA at 1.10008 (see blue circle 2 and 3 in the chart above).
Drilling down in the 5-minute chart, the action shows a more narrow trading range with a ceiling around 1.1073. On the downside, the 1.1055 has shown some support ahead of the lows. Are we in the calm before the storm. Again boundaries are being drawn. Traders will look for clues from them and the price action around those levels.
