EUR/USD Daily Outlook- May 28, 2013

By: DailyForex.com

The EUR/USD pair did almost nothing during the session on Monday, which of course would have been much of surprise as the Americans were away on Memorial Day holiday, and the Brits were celebrating something known as the "Spring Bank Holiday." This of course meant that all of the banks and large trading firms were away for the session, and because of this markets really can't be trusted with their results for the session.

This pair has been very difficult to trade lately, as we just grind sideways. However, over the last week or so I have seen signs that we are settling down into a range again. I would love to see this, to simply put it is the easiest market to trade. We simply sell it the top, and by at the bottom. Simple right?

Looking at this chart, I think that the 1.28 level will be very difficult to break down below, and should continue to be significant support. On the other hand, the 1.30 level should offer significant resistance, and if we break above that we should start to trade within the range above. The range above of course is the 1.30 level to the 1.3200 level as before.

One larger consolidation area

I look at this market is having one massive larger consolidation area, with two sections. There is the upper section, which is the aforementioned 1.30 level to the 1.32 level. Below, you have the lower session from the 1.30 level to the 1.28 level. I think eventually we will bounce around in both of these sections, but will see this market basically trade between 1.28 and 1.32 for the longer-term, possibly over the majority of the summer.

We will more than likely not see any significant trend until we break out of the 400 PIP range, something that I do not expect to see soon. On a break above the 1.30 level and a daily close, I am willing to start buying, but I do not think that the market have that much in it. Again, we would simply go back and forth but in the other section. On a break of the lows from the Friday session, I'm selling, and aiming for roughly 1.28304 a target.