The EUR/USD pair initially fell during the course of the session on Monday, but found enough support to turn things back around and form a fairly positive candle. However, I still think that this market is essentially bouncing around between the 1.11 level on the bottom, and the 1.13 level on the top. With that being the case, I do not really think that risking any serious amount of money in this market at the moment is advisable, simply because the choppiness looks set to continue. Having said that though, I do believe that there is more of an upward bias in this pair, and if we can break above the top of the shooting star from a couple of sessions ago, which is essentially clearing the 1.13 level, at that point in time we should then reach towards the 1.15 level given enough time and patience.
Continued volatility
I believe that we will continue to have volatility going forward, mainly because of the lack of confidence in one direction or the other. After all, the Federal Reserve has recently stated that although they have not raise interest rates, the biggest concerns are going to be involving the global markets, having said that it suggests that the Federal Reserve doesn’t really know what to do at this point in time. If the central bank from the United States doesn’t know what to do, most traders won’t either
Remember, Forex markets tend to focus on interest-rate expectations, and with that there isn't a whole lot to guide what happens next at both the Federal Reserve and of course the European Central Bank. With that being the case, you can anticipate a lot of choppiness going forward, and as a result I personally am not really interested in risking any real money in this market at the moment. I think that the Euro can be traded against other currencies and a much clearer manner than we have in this particular currency pair.
