We have to be honest here; we were not expecting to see this humongous uplift on the Euro this morning. We were actually expecting a further move south! Fundamentally, this recent surge could have been caused by a combination of things – Hope that a deal is still possible for Greece and the SNB’s recent buying of Euros is the most obvious in our opinion.
From a higher timeframe technical perspective, price is now seen kissing the lower limits of a weekly supply area at 1.1532-1.1278. Meanwhile, the shows that yesterday’s push higher broke above a daily swap level at 1.1148, indicating room to move further north up to the daily Quasimodo cluster zone at 1.1421/1.1390 (located relatively deep within the aforementioned weekly supply area). Therefore, with the somewhat conflicting signals here, one has to tread carefully trading this already volatile pair.
Taking the above into consideration, we have decided to stay on the sidelines today as this pair has been very difficult to trade of late. If you are contemplating on taking a trade, we would highly recommend waiting for the lower timeframes to confirm your idea as it could save you from unnecessary losses.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: Flat (Stop loss: N/A).