The EUR/USD pair fell during the bulk of the session on Wednesday, but as you can see we ended up finding a significant amount of support below the 1.3350 level, and bounce far enough to form a hammer. This hammer of course is very good-looking as it is not only a perfect shape, but it is at the very end of a massive move lower. Because of that, it appears that we could get a little bit of a bounce, and quite frankly that wouldn’t be a surprise as we are getting fairly close to the 1.33 handle, an area that I see as massively supportive.

Biggest problem of course is that the 1.35 handle above it should be massively resistive as it was a significant break down at that level. With this, I think that we have a short-term reprieve for the Euro, but ultimately the sellers will come back into the marketplace in that region if we get there, and we could in effect have a “two speed” signal. We might ultimately be able to go along in this market for the short term, and then turn around and sell once we get closer to the 1.35 handle.

Volatility should continue.

With very little out there to move the market in any one definite direction, it’s hard to imagine that we will continue to have very choppy conditions. Even with a massive selloff that we have seen over the last several weeks, you can still see where the market was choppy all the way down. I don’t think of this market’s going to be any different in the near term, and as a result I feel that we will more than likely have short-term trade setups only at this point.

If we did break below the 1.33 handle, I think this pair goes to the 1.30 handle next, but think that is going to take some serious selling pressure in order to achieve that breakdown. As far as buying is concerned, I suppose if we get above the 1.3550 level, I would be forced to start buying and aiming for the 1.37 handle.


Related Articles
  1. Savings

    Should You Look at 529 Plans Outside Your State?

    529 savings plans are not restricted by geography. So if your in-state offering has high fees or poor investment choices, look elsewhere.
  2. Entrepreneurship

    7 HR Basics for Small Businesses

    Whether or not you are a fan of human resources, every employer needs to know the answers to these questions.
  3. Savings

    Opening a Bank Account in Costa Rica as an American

    It shouldn’t be too hard to do, provided you have the appropriate documentation and forms. But be prepared for lots of paperwork!
  4. Chart Advisor

    Copper Continues Its Descent

    Copper prices have been under pressure lately and based on these charts it doesn't seem that it will reverse any time soon.
  5. Insurance

    6 Reasons To Avoid Private Mortgage Insurance

    This costly coverage protects your mortgage lender - not you.
  6. Mutual Funds & ETFs

    American Funds' Top Funds for Retirement

    Planning for retirement in this economic and investment environment is far from easy. American Funds might offer an answer.
  7. Credit & Loans

    Pre-Qualified Vs. Pre-Approved - What's The Difference?

    These terms may sound the same, but they mean very different things for homebuyers.
  8. Technical Indicators

    Using Pivot Points For Predictions

    Learn one of the most common methods of finding support and resistance levels.
  9. Insurance

    What's The Difference Between Medicare And Medicaid?

    One program is for the poor; the other is for the elderly. Learn which is which.
  10. Options & Futures

    Cyclical Versus Non-Cyclical Stocks

    Investing during an economic downturn simply means changing your focus. Discover the benefits of defensive stocks.
  1. Are catch-up contributions included in the 415 limit?

    Unlike regular employee deferrals, catch-up contributions are not included in the 415 limit. While there is an annual limit ... Read Full Answer >>
  2. Can catch-up contributions be matched?

    Depending on the terms of your plan, catch-up contributions you make to 401(k)s or other qualified retirement savings plans ... Read Full Answer >>
  3. Is Australia a developed country?

    Australia is one of the most developed countries in the world. The nation's per capita gross domestic product (GDP), one ... Read Full Answer >>
  4. Is Nigeria a developed country?

    Nigeria is not a developed country by any reasonable standard. The country's per capita gross domestic product (GDP) is much ... Read Full Answer >>
  5. Are catch-up contributions included in actual deferral percentage (ADP) testing?

    Though the Internal Revenue Service (IRS) carefully scrutinizes the contributions of highly compensated employees (HCEs) ... Read Full Answer >>
  6. Who offers 401(k) plans?

    401(k) plans are one of the most common retirement plans available. A 401(k) plan must be offered by a business. These plans ... Read Full Answer >>

You May Also Like

Trading Center