In the past several days we have seen most pairs go into a consolidation mode. Most of the currencies have found comfortable ranges and have bounced between those levels creating a choppy volatile environment. For technical traders this has played out well. For the longer term trader this can be a very frustrating period. I have put two examples below to illustrate what we have seen.
The range on the EURJPY has been fairly consistent between 168.10 and 166.90. My preference with the daily highs that are being reached is to look for a failure and a fall possibly back into the 163’s.
On the CHF, apart from a few spikes, the range has been held between the 1.0500 area down to the low 1.0300’s. While this is a large range we still have not seen a clear cut direction with any significant results.
Once again, we wait for a more defined move, and should be able to make another post soon.
Dustin
