...and looking for more
The 1.1016 level were lows August 18 and 19th. The low today touched the level, bounced a little, and is now trading below it. The range today is 130 pips. The average is 103 over the last 22 trading days (about a month). The range for the week is 381 pips (wasn't it about 30 or so hours ago that range was 90 pips?). The trend is down, but the "market" may tap the brakes a little as we head into the weekend. Having said, that technically, the bias is still lower.
We will see how what happens on this new break....
What if you still like the downside and want to risk profit for a bigger move lower later/next week?
Fundamentally, that is looking more likely as the ECB tone turned more negative (but not done anything), stocks are recovered, China is easing and trying to kick start their economy. US jobs gains (from initial claims at least) look as if the last few US employment reports might have been aberrations. What if the Fed looks at the stocks, looks at housing, looks at employment, calls inflation a oil thing and takes the view that a tightening can begin - next week. That would get the pair heading even lower with 1.0800 in the radar...
