EUR/USD struggles at 1.4600
Today’s review will be special.
I am not doing a daily chart for this currency pair.
For the past hours, the EUR/USD has been engaged in a tug o war.
Notice how tightly bounded we are between 1.4610ish and 1.4580ish.
A narrow 30 pips, give or take.
This suggest that the market has come to a point whereby you have somewhat same amount of folks who feel that this rally is overextended and folks who feel more can be yielded.
Scalpers may find this a situation ideal but from a technical and fundamental point of view, we will be trading in elevated risk if we do so.
There are reports of major big names selling from 1.4620 and apparently it seems so. When the price nears there, sudden selling pressure appears from nowhere.
From my observation, likewise for buy pressure, beginning from the 1.4580 region.
Over at the forums today, i saw a few posters saying that they had a margin call. I feel sad when i hear this as they should realize that tight ranging conditions can potentially cost you alot should you buy at tops and sell at bottoms.
S&P 500 has climbed up amid positive sentiments and is approaching 1050. This may suggest increased risk taking, and may put buy pressure on the EUR/USD.
Gold is currently above 1000 and usually is inversely correlated with the USD.
Oil remains undecided, currently easing into $68ish despite good release from China’s Industrial.
If positive sentiments remain into today’s closing, we may be looking at extending this rally.
Next resistance could be 1.4719ish.
Potential support at 1.4515ish, previous upper trendline.
Trade extremely safe as such narrow range can breakout on either side.
Besides it is the end of the week and closing of positions may trigger spikes too.
