Other than the good Trade Balance reported from Japan-0.32T against 0.14T for the month of July, there was no other significant news from this economy. We also had CPI readings from the Eurozone with reading trickling in as expected at 0.2% and 0.9%-core CPI. With no other high volatility news expected in today, we shall be relying on our charts for hints on the probable trend directions.
A look at the charts indicates that we are in the accumulation stage especially if this is viewed from the daily chart. Apparently, over two trading weeks price action has been moving horizontally in a tight 60 pip channel with mostly doji patterns. In this kind of scenario, there will be a probable break above the narrow channel upwards especially now that yesterday closed with a strong bullish candle stick which broke above this channel and also look at the stochastics which is at the oversold territory.
Look to initiate buys in the 15 Min chart once a buy signal is printed by the stochastics preferably in the 50-61.8 Fibonacci retracement levels printed from yesterday Hi-Lo.
Buy Limit: 113.15-113.30
Stop Loss: 112. 80
Take Profit: at your discretion but hold this long term.
Have a good trading day and a nice weekend.