Momentum is still even though recent price structure offers the appearance of some minor stability. Often these type of formations within this context serve as continuation patterns. My recent report in the GBP highlighted a similar condition which has been proven correct so far as price has explored lower levels.
For the purpose of issuing a signal to our followers on S.C., the .7374 and .7351 reversal zone boundaries serve as the general area to evaluate potential reversal patterns.
This means on a day trading basis, there is plenty of potential short opportunity, but you really must be nimble to avoid getting caught in any noise that is occurring on this time frame. The .7564 (.382 of recent structure) and areas above offer much more attractive reward/risk for any potential swing trades on the short side.
In summary, range bound markets may be tempting at times, and may even offer opportunities on smaller time frames. From a swing trading standpoint, randomness is high which means our criteria for a long or short is far from being met. Let the market decide where it wants to go and until it offers a more attractive scenario, there is no reason to take any action. Check out S.C. for a recent update on EUR/USD and Gold markets as well.
Questions and comments welcome.