The EU price has been restricted to a small range with the support area of 1.4270ish holding. As you can see from the 4H chart the price is making a lower high and thus there is weakness and I would tend to favour a breakout to the downside of this small range (also China equity markets fell nearly 5% overnight which will put pressure on the FTSE and Dow / S&P - if these fall it normally leads to risk aversion and an increase in the USD and Yen).
However, significant moves in the price are driven by economic news and/or risk sentiment. We have some economic releases this afternoon and thus during London I would expect the price to remain range bound.
When the price trades within a small range, I like to zoom into the 1H chart to see if the range points become more clear and a short trade setup possible. Ive attached the 1H chart below - how clear is the downward sloping trendline (resistance) and the horizontal support line?! This is a triangle formation and as you can see we are close to breakout territory which should coincide with this afternoons economic news releases in the US.
Until then if the price reaches one of the extremes I might enter a short trade with a small stop (in case of a breakout) for a few pips prior to 3pm news releases.
