The EUR/USD pair fell during the session on Tuesday, but remains above the 1.35 level which I see as the “floor” in that pair. Because of this, I am essentially sitting on the sidelines and waiting for a signal to start buying. I don’t have a yet obviously, but will be keeping an eye on this market as I think the natural proclivity of the Euro to continue going higher should reassert itself fairly soon. I think that the next day or two could provide a supportive candle in order to start buying. I think that the 1.37 level will of course be resistive, so I believe that any supportive candle down near the 1.35 level that I buy will be short-term only.
I believe that the 1.35 level will be crucial, because if we get below that level on a daily close we could start falling rather significantly. The pair tends to be rather choppy anyways, so a break down below that would be interesting as it could finally give us some serious action.
Going forward, this pair will continue to be short-term trading only.
I believe that this will continue to be a short-term and somewhat range bound market. It’s difficult to imagine that it suddenly would get wheels and go in one direction for any real length of time, at least not without chopping around in the process. With that in mind, I feel that the market will more than likely bounce around in this general vicinity for the rest of the summer, but that should be rather profitable if we do get that type of action. After all, it’s quite easy to turn around and buy at the bottom and sellers the top, which is essentially what range trading is.
I hope that the 1.35 level holds, because that means we will more than likely get the type of action. A 200 PIP range isn’t huge, but it certainly is enough to make some serious money off of during the slow summer months as most traders will be away at holiday.
