It is Monday morning, and time to take a look at how action over the weekend played out, and in turn, how we can interpret this action as far as forming a trading strategy for today is concerned. As ever, we’re going to put together two intraday analyses, with the first one looking at the early morning European session and the second looking at action heading into this evening and, beyond that, into the Asian session tonight.
So, let’s get started. Action over the weekend was pretty flat, and the trend we saw throughout the majority of last week – sideways, range bound action with a few intraday breakouts – held firm. We got a little bit of a downside break earlier this morning, but it didn’t give us too much to play with as far as breakout strategy is concerned. However, it has defined a pretty solid range, and this is what we are looking to use going forward today. So, before you start, take a quick look at the chart below. It is a 15-minute candlestick chart showing the last 12 hours or so worth of action, and it has our range in focus overlaid in green.