The tight range trading continues with no hint of a distinct direction. After bouncing between the borders for most of the day yesterday, the pair now seems to be consolidating around the 1.3680 level as the volatility is beginning to decrease. Indicators are giving mixed signals although there is still a lot of positive momentum. Traders should wait for a clear signal on the hourly level before entering the market today.
The pair is still traded within the bullish channel as the direction is currently unclear. No significant breach has been made in either direction, yet there is a bullish hint in the form of a cross on the 1 hour Slow Stochastic. The hourly chart's Bollinger Bands are tightening which indicates that the break is near. Going short with tight stops might be smart today.
This pair is still continue its steady downward momentum that began two days ago, which is evident from the daily chart. On the 4 hour chart however, there is a bullish cross forming on the Slow Stochastic oscillator, indicating of a possible bullish correction. Going short with very tight stops might be a good decision today.
After experiencing a mild bullish correction yesterday, the pair has fully resumed its general bearish trend. The RSI on the 4 hour chart is now floating around the 40 line, indicating that the bearish momentum still has more steam in it. Going short seems to be preferable.