By: Mike Kulej
The most liquid currency pair, the EUR-USD, has been sending many mixed signals lately. After reaching a high of 1.3330, this pair pulled back to 1.2600. Just as it appeared that the downtrend has resumed, the EUR-USD jumped to 1.2915, only to sell off on Tuesday by about 200 pips. Which way is it, then?
The market itself might provide an answer soon. Few of the latest minor price swings established a small trading range. Small, that is, in the context of the daily chart. It spans about 330 pips and is clearly visible on this graph. The next bigger move should come on a breakout from this range, something that could happen very soon.
An upside breakout opens the road to next resistance level, which is at 1.3330, while a bearish move could push the EUR-USD down to 1.2150. These are big trading targets, so the current trading range is well worth watching. Right now, other technical indicators are of not much help, they are right in the middle of their respective scales. However, once a breakout happens, they will spring back to life, too.
