EUR/USD Range Continues To Hold – Forex Commentary 4/11/16
EUR/USD Range Continues
The week long range continues on the EUR/USD. Overall the plan for today is pretty straight forward given the continued range. At this point as long as that range holds the directional bias will remain open. As you can see in the chart the first upper and first lower level represent the range extreme and therefore they are very likely to hold a mass of liquidity given the multiple days range. I will be looking for a stop run of either level. Additionally a backside long off the upper level is not a valid option given the proximity of the ADR.
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Pound Holds After Breaking Lower
Overall the COT data is still showing the Pound as the weaker of the two currencies. The COT data is showing neutral/bullish pressure on the Euro and neutral/bearish pressure on the Pound. With that being said the short term momentum to the downside on the GBP/USD has faded and even if we are going to see further downside, I wouldn’t be surprised if the GBP/USD pushed up for a day or two before that occurred. In regards to the current direction bias, our market cycle remains open and therefore we have listed manipulation points to both sides of the price. At this point we have one upper and one lower manipulation point. As I mentioned in the members daily market preview video, I would only be using the upper level for a backside long option should the price break above it.
Forex Market News For April 11th 2016
Officially we do not have any scheduled data that I would be concerned with but we do have an unscheduled Fed Announcement today at some point during the New York session. More than likely you will see the news outlets put an exact time on this before the start of the NY Session so be sure to check your news site before trading. Given the announcement it would also be wise to at least be paying attention when Dudley starts to speak at 9:25 AM Eastern.