Traders might want to take a break as the race for next presidential election gets tighter with each passing day. The world’s leading markets, namely S&P 500 (-2%), Dow Jones (-1.5%), Nasdaq Composite (-2.8%), have encountered a short burst of volatility, illustrating how speculators are giving too much weightage to pre-poll readings. These are, however, just cautious parameters amid uncertain prognostications.
Not saying that the US election results could impact an independent market like Bitcoin, one can still see digital currency traders mirroring stock market traders’ cautious take. Especially after the recent rally, which saw Bitcoin price logging <$100 gains in just two weeks, traders are now preferring to keep their heads low. As a result, what we have today is a less volatile and sensitive price action.
Moving away from the fundamental factors, and bringing our focus on intraday trading strategy, here is what we are looking as we head into the US session.
The chart above is a fifteen-minute chart illustrating today’s price action, and it has got our range overlaid. Take a look at that before we kick things off so as you know what we’re going for before things get moving.
As the chart shows, the range for today is defined by 709 fiat as our interim resistance and 695 fiat as interim support. In between, we also have 700 acting as the psychological support. Considering the wide-enough range, we will be using our usual intraday strategy at place for now. That means, entering a long position towards resistance when price floats near support, or vice versa.
From a breakout perspective, here is our strategy:
If price breaks below 700, followed by 695, it will have us watch for a close below that level to validate an immediate downside entry towards 675. Conversely, if price breaks above resistance, we will look for a close to give us an excuse to get in long towards 718 fiat, a pretty aggressive target.
Charts courtesy – SimpleFX