Welcome to the new week traders. Apparently it is a public holiday in the States today, so won't be expecting major moves unless more news comes ount. As I mentioned last week, market optimism was on the rise. This was helped along by China's decision to reduce the reserve requirement ratio by 50 basis points. We witnessed a gap up in the market today which may accelerate once the Greek bail out deal is confirmed. However, still looking for this market rally to be well capped at current highs given the sluggish fundamentals coming out of Europe.
Recapping last week's trade on EUR/GBP. I did come away with a small profit on this one. I booked the trade once the 4 hour candle reached the top of the ascending channel. As you can see, the EUR took a dive into the market close as traders hedged their bets or closed positions into the weekend. However, the positive risk sentiment has now helped this pair to test the next high at the top of the ascending channel.
Good luck in your trades this week and we'll catch up again soon.
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