Hello traders!
A few issues with the FXCM marketscope this morning means I don’t have any available charts or pivot levels to share with you.
First of all, I think at the moment we are going to be continuing the range trading until tomorrow, congratulations to anyone who caught the rally this morning, I am still holding a bearish bias as I personally think Draghi won’t deliver a bazooka tomorrow. I think it’s more likely he will remain fairly conservative, possibly a small rate cut and introduce a two tier system similar to Japan, but unlikely to increase or expand the already massive bond buying program. But of course if I am wrong, I will happily sit out on the sidelines and wait for a continuation trade.
We are currently approaching a major resistance level and I am getting various mixed signals from my indicators, so at times like these, I prefer to sit out and wait for a clearer opportunity.
I read that the Brexit could trigger a EURUSD decline to parity and bring GBPUSD down to 1.30, I found that interesting considering what effect that may have on the Dax, if you believe that EURUSD and Dax have negative correlation.
There is a potential opportunity for bears to play a range trade from current levels with a stop above either 9950, or 9900 and look to target a move back down towards the middle or lower part of the range. The hourly chart is showing negative divergence (RSI) after providing a sell signal near resistance, so I like the look of a swing short. 2 or 3 (even higher) to 1 reward to risk setups exist there.
So good luck to anyone trading the volatility tomorrow, I will try not to.
