Abrupt up and down moves on Brexit headlines
Looking at the hourly chart, today’s initial high broke above yesterday’s high at 1.29422, but then fell to 1.2818. This lower move removed its 100-hour moving average (blue line), but stalled in a wide swing zone between the 1.2800 level and the 1.28215 level (see red numbered circles and lower yellow area).
If you had luck and patience, buying into this area led to a lucky break up on other Brexit headlines. The day’s highs were removed and the price climbed to 1.2978 where another stock pulled the pair back to another area of oscillation between 1.2892 and 1.2902. The 50% day trading range is within this zone. Can the support area now hold?
When headlines from external events that are interspersed at random during a trading day play an influence, it requires caution and a bit of luck. It also likely leads to being a bit more conservative when you’re in luck (i.e. need to take some profit).