The EUR/USD pair fell during most of the session on Wednesday, but as you can see found enough support at the 1.3650 level to bounce and form a bit of a hammer. However, I see significant resistance at the 1.37 level, and I also see that there is a high probability of resistance all the way to the 1.3750 handle as well. In other words, this is a market that has far too much in the way of resistance above to be comfortable going long. In fact, if I wish to play the Euro, it’s probably going to be in the EUR/GBP pair, and probably to the downside as we are starting to break down a bit. After all, we have a mess as far as what’s going on in the United States and Europe, and what the market perceives as the next move by the central banks.

Adding to the confusion is the fact that today is nonfarm payroll Friday. Yes, I know its Thursday, but the July 4 Independence holiday of course will have government agencies closed in the United States. That being the case, it’s very likely that the market will go back and forth, make quite a bit of noise, and then ultimately settle one doing nothing by the end of the day. Certainly, I would be very surprised if we broke out or down with any significance by the time the market closed. That’s the way this market has been for some time, and nonfarm payroll Fridays tend to be the absolute worst example of this type of days.

Sometimes, it’s just not worth the hassle.

I get plenty of emails from new traders asking me where the Euro is going to go. Quite frankly, I don’t care where it goes against the US dollar, it’s not worth being bothered with at this point as there is far too much in the way of confusion. If you wish to trade the Euro, try going long against the Japanese yen, or again, short against the British pound given the correct move. This market for me is simply dead money waiting to happen.


Related Articles
  1. Investing

    5 Reasons to Rethink Retirement Investing

    Wherever you fall on a retirement crisis, consider these 5 reasons to rethink your investing strategy.
  2. Active Trading

    10 Books Every Investor Should Read

    Want advice from some of the most successful investors of all time? Check out our reading list.
  3. Investing Basics

    How Interest Rates Affect The Stock Market

    Whether you're buying lunch, a home or a stock, you're influenced by interest rates.
  4. Home & Auto

    Simple Ways To Invest In Real Estate

    Owning property isn't always easy, but there are plenty of perks. Find out how to buy in.
  5. Economics

    What Is Fiscal Policy?

    Learn how governments adjust taxes and spending to moderate the economy.
  6. Investing Basics

    Starting A Small Business For Less Than $1000

    Here are the top niche businesses which can be started for less than $1000.
  7. Insurance

    How to Choose Permanent Life Insurance Policies

    When does it makes sense to buy a guaranteed rather than a non-guaranteed life insurance policy?
  8. Credit & Loans

    The Best Alternatives to Payday Loans

    There are better ways to handle a financial emergency between paychecks, including the 12 described here.
  9. Retirement

    Should You Pay Someone to Create a Retirement Plan?

    Nobody likes to pay for help, but it may be necessary to shell out the extra cash for proper retirement planning help.
  10. Mutual Funds & ETFs

    The Top ETFs For a Fast Recovery After a Recession

    Recession and recovery cycles are imminent in the markets. Here are the ETFs, which provide the best performance for a fast recovery after a recession.
  1. How does my spousal Social Security benefit work?

    If you have never worked or paid Social Security taxes, you will not be eligible to receive Social Security retirement benefits ... Read Full Answer >>
  2. Why are most airplane tickets nonrefundable?

    Airplane tickets are generally nonrefundable, because the majority of tickets sold are discount tickets. In exchange for ... Read Full Answer >>
  3. Is North Korea a developed country?

    North Korea is one of the poorest and least developed countries in the world. It is far from a developed country. Because ... Read Full Answer >>
  4. Does Netspend accept wire transfers?

    NetSpend accepts some types of wire transfers to add money to the prepaid debit cards it issues to its customers. There are ... Read Full Answer >>
  5. Is Mexico a developed country?

    As of 2015, Mexico is not a developed country. However, it beats the majority of its peers in the developing world on most ... Read Full Answer >>
  6. Is China a developed country?

    Despite having the world's second-largest economy and third-largest military, China is still, as of 2015, not classified ... Read Full Answer >>

You May Also Like

Trading Center