The EUR/USD pair fell during the balance of the session on Wednesday, but as you can see got a little bit of a bounce in order to show some signs of support. This is just a continuation of the messiness that we have seen recently, and I believe that this will continue for the foreseeable future and as a result I am actually completely disinterested in this pair at the moment. I know this seems to be blasphemy to a lot of Forex traders, but there truly are other markets to focus on.
The lack of decisive action in this market has me a bit concerned, but at the end of the day I think it is ultimately going to be somewhat positive. However, I just cannot be bothered with this type of trading action, as it simply doesn't invite large profits. I think that the markets are going to be susceptible to headline risk going forward, so as a result I think it's better to leave this market alone. I do think that ultimately the Federal Reserve will make the decision that moves this market. And that decision is going to be based upon whether or not they are going to taper off of quantitative easing in the month of September. This pair is less about the Euro and more about the Dollar. It really comes down to what the Federal Reserve decides is the correct action for this market.
Expect a couple weeks of choppiness.
Because that decision isn't going to be made until September, I believe that headlines will continue to move this market drastically, and that we will eventually get the truth, but in the meantime we will more than likely get a lot of false breakouts and false starts. Because of this, I actually think this pair is probably best left alone as there are going to be far too many people trying to "get ahead of the market", which generally means gamble. All of these gamblers are going to push the market around, and more than likely burn up a lot of trading accounts.
