So todays news was a German decision to reject petition from Greece about debt extension. This affected some pairs, lets check how price action looked today.
Eur/usd is still in range. Today’s range was between S1 and R1 lines. Nothing interesting on higher time frames (1-hour+). You could try to find trade opportunities on lower time frames but overall it wasn’t the easiest trading day. I don’t like to trade when there is a range and usually I try to lower my positions size (because I tend to make more mistakes). But it’s me and there are traders who like these kind of markets.
Before noon you could find an ABC pattern, but it was near R1 line(always tricky – will R1 work as resistance?). Anyway, I would close that at R1 because it was near 138.2% extension line. Below eur/usd 5 min.:
We had retracement back to the 61.8% line and later break above 0 line and move up to 200% extension. As you can see, daily R1 wasn’t a problem for price. It looked like price may go up to the R2 line but it didn’t. Later there was a fast move towards S1 line with rather hard to catch action.
It was little more interesting on usd/jpy. Bulls decided to attack in the morning and we saw a nice ABC pattern. It was still below 200 SMA (red) so I was waiting to see if it will be a resistance. First it was, but later bulls managed to close above that moving average. Move lasted up to the 200% extension line, usd/jpy 5 min.:
I closed my trade at 161.8% extension because on 15 min. chart it was area where 200 SMA was located so I didn’t want to risk profit. Below usd/jpy 15 min. chart, red average is 200 sma where i took profit:
That’s it for today, good luck tomorow!