The EUR/USD pair fell during the session on Friday, but as you can see the range was relatively small, which of course makes sense as the Americans would have been away at the Independence Day holiday. That of course has an adverse effect on liquidity, so by the time the Europeans went home, the markets were essentially dead. The market remains around the 1.36 level, but I believe that this market is going to pay more attention to the 1.35 level for support, and the 1.37 level for resistance.

The 1.37 level seems to extend all the way to the 1.3750 level, so I believe that raking out above this range is probably not going to happen or some time. In fact, I’m starting to begin to think that perhaps the summer range is going to be between the 1.35 level on the downside, and the aforementioned 1.37 level.

Short-term trading only.

I believe that this market is going to be very difficult to trade in general, and we should continue to see lots of short-term trading. Small gains will probably be the way to go, and I believe also that the 1.36 level is essentially “no man’s land”, meaning that we are right in the middle of the range, and therefore I’m not even looking for a trade at this point in time.

I will continue to sell near the 1.37 level on resistive looking candles, and by down at the 1.35 handle on supportive looking candles. Beyond that, I really don’t see much of an opportunity for trading in this marketplace. However, what I have been doing is looking at this pair as a sign on whether or not the Euro will be strengthening or weakening. When I use that information for is trading pairs such as the EUR/JPY, the EUR/CHF, and most importantly as of late, the EUR/GBP. With that, think of this more or less as a “tertiary indicator”, when you look at other Eurocentric pairs. However, as far as trading in this particular market, I’m not overly excited one way or the other.


Related Articles
  1. Investing

    5 Ways to Reduce Your Taxes After a Windfall Gain

    Windfall income is a welcome padding to any bank account, but plan for the government's share before you start spending.
  2. Retirement

    5 Great Timeshare Locales for Retirees on a Budget

    For retirees on a budget, there are affordable timeshares located in charming towns that don't cost a fortune for vacation time.
  3. Retirement

    How Are 401(k) Withdrawals Taxed for Nonresidents?

    As a U.S. nonresident, deciding what to do with your 401(k) after you return home comes down to which tax penalties, if any, you're willing to incur.
  4. Economics

    These Will Be the World's Top Economies in 2020

    Discover the current economic forces that are anticipated to significantly shift the landscape of the world's most powerful economies over the next decade.
  5. Stock Analysis

    The Biggest Oil Producers in Asia

    Learn which Asian countries deliver the most crude oil to market, and discover what companies are the biggest producers in each country.
  6. Retirement

    The 5 Best Retirement Communities in Asheville, N.C

    Learn about some of Asheville, North Carolina's best retirement communities and discover why the area is such a popular retirement destination.
  7. Mutual Funds & ETFs

    Top 3 Muni California Mutual Funds

    Discover analyses of the top three California municipal bond mutual funds, and learn about their characteristics, historical performance and suitability.
  8. Mutual Funds & ETFs

    Top 3 Japanese Bond ETFs

    Learn about the top three exchange-traded funds (ETFs) that invest in sovereign and corporate bonds issued by developed countries, including Japan.
  9. Stock Analysis

    The 5 Biggest Russian Oil Companies

    Discover the top Russian oil companies by production volume and find out more about their domestic and international business operations.
  10. Taxes

    Here's How to Deduct Your Stock Losses From Your Tax Bill

    Learn the proper procedure for deducting stock investing losses, and get some tips on how to strategically take losses to lower your income tax bill.
  1. How can companies use the cash flow statement to mislead investors?

    Cash flow is a means for most investors to examine the actual economics of a business they might invest in, especially from ... Read Full Answer >>
  2. Can working capital be too high?

    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
  3. Does working capital include inventory?

    A company's working capital includes inventory, and increases in inventory make working capital increase. Working capital ... Read Full Answer >>
  4. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  5. What licenses does a hedge fund manager need to have?

    A hedge fund manager does not necessarily need any specific license to operate a fund, but depending on the type of investments ... Read Full Answer >>
  6. What do hedge fund analysts do?

    A hedge fund analyst primarily provides support to a portfolio manager on how to best structure the hedge fund's investment ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!