The EUR/USD pair continued to gain during the Tuesday session, even as the Americans weren't necessarily providing much liquidity. The fact is that this pair continues to climb this minor trend line, and as such we are approaching the 1.30 level yet again.
Getting to the 1.30 level has been the easy part so far. Once we get above this area, there is quite a bit of noise until we get to 1.35 based upon the longer-term charts. Is because of this that I am not necessarily excited by the prospect of trading this currency pair. However, I am the first to admit that although I don't like the Euro in general, it appears that the bias is certainly to the upside.
The grinding action of this pair will certainly attract quite a few traders based upon conversations I have had with fellow traders. Looking at this chart, I think that we are trying to form some type of upward channel, but with the various headline risks out there, is going to be difficult to be long of this market without being overly concerned.
Far too noisy for the potential reward
After having several conversations with people I know in the Forex markets, I know that many of my trading friends have simply been avoiding this pair. I do know that most new traders seem to be focused on this particular one, and that may have a lot to do with the fact of the lows spread. Nonetheless, the spread is irrelevant when you have a choppy market like this.
For me, I find this market far too choppy and prone to bouts of drama in order to be overly enthused about trading it. With that being said, I personally am flat of this marketplace but would have to be long if forced into position. I do however see a clear trade at the 1.28 level as it would be a significant break down and support on several different levels of the same time. Because of this, I believe that is the smartest trade out there, but we may or may not get that signaled.