EUR/USD And GBP/USD Holds Tight Range – Forex Commentary 2/18/16
EUR/USD & GBP/USD Hold Tight Range
The market analysis for the GBP/USD and EUR/USD is similar today as both pairs remain in a range today. For those of you who are members I would encourage you to watch tonight’s daily market preview video as I detail a few different points for taking a trade setup after news is released and the rules around that type of forex trade setup. After continuing to the downside, both pairs have failed to regain any of the previous drop. At this point the range does give us a clear starting point for the next market cycle that could potentially develop. Until that occurs we will trade with an open directional bias and as such you can see in the charts below we have manipulation points listed both above and below the current price.
The COT data I mentioned earlier this week, is showing selling pressure in the Pound still while the Euro was looking bullish. With that being said, should both pairs start to break the first lower manipulation point I would be more likely short the GBP/USD vs the EUR/USD. If we were to see the upper manipulation point start to break I would prefer the EUR/USD long vs the GBP/USD.
Forex Market News For February 18th 2016
Philly Fed Manufacturing Index 10:00 AM Eastern: Back 8 months ago we had a 17 pip spike which would mean I would not carry into this release. This is the type of news that is right on the edge and I will treat it with some discretion. For example, today we had a potential long setup only 15 minutes ahead of the news. Obviously in that type of scenario I’m going to allow the news to come out before entering the trade. If however I’m in the trade and in profit I would probably carry into the release. If on the other hand I’m near break even or negative I would close before the actual release. This month -2.9 is the expected number.