So that’s another day done, and it’s been a pretty good day from an intraday trading perspective. We noted this morning that we would like to see lots of movement, and while it’s always nice to see some upside momentum from a long term perspective, intraday doesn’t really necessitate a short term bias. Today’s action came to the downside, and we were able to get in to the market on a break of our predetermined support. A quick run through carried us to our target nice and easy, and we got in and out for a quick draw profit.
With any luck, we’ll see a similar degree of volatility as we head in to the close of the US session this evening, and beyond that, in to the Asian session early morning.
So, with this said, let’s take a look at what’s going on, and we we are looking to get in and out of the markets on any forward volatility. As ever, take a quick look at the chart below to get an idea of what we are focusing on. It’s a five-minute candlestick chart and it’s got today’s action illustrated as it intertwines our key levels.
So, as the chart shows, the levels in focus moving forward are in term support to the downside at 629, and in term resistance to the upside at 632. Just as with this morning, this width of range is far too tight to go at with an intrarange approach, so it’s all about breakout for now.
If price closes above in term resistance, we will get in long towards an immediate upside target of 637. A stop on the trade at 630 defines risk. Conversely, if price breaks below support, a close below this level will put us short towards 625. This one’s a little tighter, so a stop at 631 looks good.
Charts courtesy of SimpleFX