Start of Another Glorious Week
Another week is upon us...
Friday's trade didn't go quite as planned. After my buy order got filled, the Sterling was confined to the 1.8470ish to 1.8525 range, which was enough to hit my 30 pip S/L. When the 8:30 am US jobs report came out weaker than expected, price rose rapidly to 1.8620s before closing just shy of 1.8600 for the week.
To start this week, the Cable went as high as 1.8690 before retreating to its current 1.8580 level. How much higher can it go? The Fed seems to be moving toward one more rate hike on Wednesday, which will probably cause a temporary setback for the Sterling. After that, who knows? The good folks at BabyPips.com see price finding support at its current position, and even pushing higher to 1.9200. Graph courtesy BabyPips.com.
On a much shorter timescale, what's going to happen tomorrow? Not much on the fundamentals. I wouldn't be surprised if volume slowed down some what in anticipation of the Fed's rate decision on Wednesday. More importanly, the markets will be closely watching to see if there are any indications of continued rate hikes or if the Fed will stablize the rate. I expect the Cable to rise tomorrow, but not exceed Monday's high. Therefore, I'm buying at the pivot point of 1.8610, and setting my T/P and S/L 30 pips out.
Good night and good luck.
Friday's trade didn't go quite as planned. After my buy order got filled, the Sterling was confined to the 1.8470ish to 1.8525 range, which was enough to hit my 30 pip S/L. When the 8:30 am US jobs report came out weaker than expected, price rose rapidly to 1.8620s before closing just shy of 1.8600 for the week.
To start this week, the Cable went as high as 1.8690 before retreating to its current 1.8580 level. How much higher can it go? The Fed seems to be moving toward one more rate hike on Wednesday, which will probably cause a temporary setback for the Sterling. After that, who knows? The good folks at BabyPips.com see price finding support at its current position, and even pushing higher to 1.9200. Graph courtesy BabyPips.com.
On a much shorter timescale, what's going to happen tomorrow? Not much on the fundamentals. I wouldn't be surprised if volume slowed down some what in anticipation of the Fed's rate decision on Wednesday. More importanly, the markets will be closely watching to see if there are any indications of continued rate hikes or if the Fed will stablize the rate. I expect the Cable to rise tomorrow, but not exceed Monday's high. Therefore, I'm buying at the pivot point of 1.8610, and setting my T/P and S/L 30 pips out.
Good night and good luck.
posted by Young Pip at 9:10 PM
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