EURUSD on the back burner today. Looking for an extension of the narrow range
The EURUSD is confined in a narrow trading range today (54 pips) as the GBPUSD and the USDJPY has taken center stage. Discounting the Christmas week at the end of of December, the low to high trading range is one of the most narrow trading ranges in the EURUSD going back to September 2010 (April 22nd there was a range of 55 pips, in September 2010, there was a day with a 54 pip trading range). The expectation would be for an extension of the range. The average range over the last 20 trading days has been 134 pips. I would not expect the market to reach that range, but there still is room for some sort of extension.
The 5 minute chart below has trend line support at 1.3214 and topside resistance at the 1.3256 level. The midpoint of the days range is 1.3237. Yesterday’s close came in at 1.3234. The market may look to these in-between values as clues for bullish and bearish bias. Price below = bearish. Price above = bullish.
In a narrow range, risk can be limited. What you hope for is the longer the market non trends, the better chance for a trend. Trader will be watching for the break and momentum.









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