Article originally published on innerfx.com and republished here with permission
In these matters the only certainty is that nothing is certain. ~ Pliny the Elder
Good morning. Not much happened since yesterday, hence the trading ranges remain narrow. The dollar index holds onto gains above support formed by recent top, while the euro continues to hover around $1.300 in sideways trade.
No change of sentiment – dips will likely continue to be bought
While it holds into this narrow range, it’s a good idea to look for opportunities in other pairs. Anyway, if it exists the range to the upside, expect new rounds of selling within the 1.3150-1.3200 region
I remain bullish on GBPAUD, expecting a breakout in the next sessions. Buying on strength above 1.5650 is a plan to consider
still holds below 1.0400 trapped in a range. Short-term momentum remains bullish as long as there is enough buying power in the 1.0250-1.0300 range. Buying on the potential break of resistance at 1.0400 still seems a reasonable plan
Selling on the break of 78 a few days ago was a good idea and the same plan to sell below a round number – 77 this time – is a plan to have in mind… just in case downtrend continues.
Although support at 1.3050/60 holds but the recovery is not too strong, it’s still a good idea to look for a short opportunity on the potential break of 1.3050