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. Active Trading

    FYI On ROI: A Guide To Calculating Return On Investment

    Return on investment is a simple equation that can give you an edge when fine-tuning your portfolio - here's how to use it.
  2. Investing

    How to Take Maternity Leave as a Freelancer

    Freelancers are not covered under the Family and Medical Leave Act, but maternity leave is still doable with these tips.
  3. Retirement

    Roth 401(k), 403(b): Which Is Right for You?

    Learn how to decide between a traditional or Roth version of the 401(k), 403(b) or 457(b) retirement plans to help you build your nest egg.
  4. Mutual Funds & ETFs

    Why ETFs Are a Smart Investment Choice for Millennials

    Exchange-traded funds offer an investment alternative to cost-conscious millennials who want to diversify their portfolios with less risk.
  5. Markets

    What Is the Labor Market Conditions Index?

    The Labor Market Conditions Index is a new Fed indicator to track labor statistics. How useful is it?
  6. Investing

    Asset Manager Ethics: Acting With Competence and Diligence

    Managers must make investment decisions based on their personal investment process, which in turn should be based on solid research and due diligence.
  7. Investing

    Asset Manager Ethics: Acting In the Benefit of Clients

    Investment managers should always act to benefit the client. Learn what actions managers should take on a client's behalf.
  8. Investing Basics

    Calculating The Present And Future Value Of Annuities

    Here's everything you need to account for when calculating the present and future value of annuities.
  9. Economics

    The World's Top 10 Economies

    A look at the top ten economies in the world.
  10. Forex Education

    Understanding The Income Statement

    Learn how to use revenue and expenses, among other factors, to break down and analyze a company.
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. Do FHA loans require escrow accounts?

    Federal Housing Administration (FHA) loans require escrow accounts for property taxes, homeowners insurance and mortgage ... Read Full Answer >>
  6. Is Greece a developed country?

    Greece is a developed country by most meaningful metrics. However, its financial struggles have been well documented in the ... Read Full Answer >>

You May Also Like

Trading Center