Background
Yesterday’s indecisive neutral bias proved correct as for the second day in a row, prices were contained within Friday’s parameters. But crucially, yesterday’s higher lows were firmly rejected and the market closed near the top of modest net gains on the day.
This price action does not create strong signals for sentiment but although a new six-month high was rejected in Asia, EURUSD is expected to continue tracking a bullish Keltner channel higher.
Management and risk description
A move to 1.0956 means the stop can be raised to break-even.
Parameters
Entry: buy in 1.0925/30 area and at 1.0906.
Stop: 1.0883 offered.
Target: 1.0956, 1.0982 or even 1.1009.
Time horizon: intraday, ending 1500 GMT.