The EUR/USD pair fell slightly during the session on Wednesday, showing that there was indeed resistance above as I had suspected in yesterday’s article. However, I can’t say that this pair is one that I want to sell at the moment either, as the 1.37 level could very well be supportive now. The market could easily bounce around between the 1.37 and 1.38 levels for a while as there is no clear “winner” between these two currencies at the moment.
The 1.38 level causes a lot of issues for me as well, as I see it offering quite a bit of resistance, and probably all the way to the 1.40 level. The longer-term charts certainly seem to suggest this, so it is probably going to prove to be a “self-fulfilling prophecy” going forward as I am sure I am not the only person noticing this.
Choppiness. Surprise!
This pair looks as if it is ready to continue to chop around overall. I have been saying this for a while now, and although we have a move here and there – we have been stuck in a 300 pip range for the last three months. In other words, the pair can’t get any real traction in either direction at the moment, and I don’t really see what is going to change that in the near term. Quite frankly, a lot of my friends have simply walked away from the pair, as it is no longer the “easiest pair” to trade.
Small spread aside, I can’t think of too many advantages to trading this pair either. However, there are uses for it, even if it isn’t to actually make money from the market itself. After all, this is the most commonly quoted gauge of strength in the Euro, and if it is strong, then you can expect the Euro to strengthen elsewhere.
I will keep an eye on this pair, and use it to determine whether or not to buy the EUR/JPY pair, one that is obviously in more of a breakout situation. The better this pair does, the better that one should do after all.
