The EUR/USD pair try to rally during the session on Wednesday, but as you can see the 1.38 level offered far too much in the way of resistance. Because of this, we pulled lower, and formed a fairly negative candle. However, I can see plenty of support just below as well, so this is set some for a market that’s going to be very tight to say the least. With that, I am not interested in this market for anything more than a short-term scalp at best, and I would suggest that most traders would probably feel the same at this moment in time.
Keep in mind that Friday is the nonfarm payroll number, and that of course will have a massive effect on the Forex markets in general. Because of this, I don’t think you’re going to see a lot of big moves over the next 48 hours, at least until that number comes out. It’s difficult to imagine that this market continues to go in one direction or the other between now and then, barring some type of massive headline.
Choppiness will continue to be the norm.
I believe that this market will continue to be choppy regardless what the announcement is on Friday. Because of this, this is one of those markets they simply am not interested in at the moment, as it has been very difficult to deal with. The “moves” that we have seen recently have been of the ultra-short-term variety, and as a result it’s very difficult to make any serious money in this market, least of all if you’re trying to find a decent risk to reward ratio type of trade.
Going forward, I still see the 1.37 level is massively supportive, and it isn’t until we get below there on a daily close that I think we could be freed up to fall to the 1.35 handle. To the upside, I see plenty of resistance in the form of the 1.3850 level, the 1.39 level, and then of course the 1.40 level. With all that, this market just doesn’t look that interesting to me.
