The EUR/USD pair fell during the course of the session on Wednesday, but remains above the 1.35 level, an area I see as vital. With that, I’m not ready to start selling yet, although the candle for the day looks rather weak. The biggest problem I see with this shooting star shaped candle is the fact that it’s right above the 1.35 handle, an area that cause such a massive reaction to the upside last time we touched it. With that being the case, I think that the market could be getting to the point where buyers may step in again, thereby making it almost impossible to sell.

A supportive candle at the 1.35 handle would be reason enough for me to start buying again, as I think we could find ourselves stuck in a range bound market between the 1.35 level on the bottom, and the 1.37 level on the top. Ultimately, is going to be choppy regardless, that’s just the nature of this market these days.

Federal Reserve and the European Central Bank.

Unfortunately, the way to trade this market is to figure out who the market believes more, the Federal Reserve or the ECB when it comes to trying to destroy their own currencies. That is and quite how they put it obviously, but both are entertaining very loose monetary policies. That does nothing to help the value of the currency, and of course that’s what the central banks one at the moment.

With that being the case, I feel that this market will continue to be a short-term traders market, and quite frankly I hope we get stuck between these 2 levels for the rest of the summer. Position the easiest market moves to trade, as you simply buy at the bottom and sell at the top. At this point in time, I believe that is what is going to happen. That’s how I’m playing this market, but if we break down below the 1.35 level on a daily close, I would have to admit that the sellers are taken control and we should go down to the 1.33 handle.

EURUSD Daily 61214

Related Articles
  1. Credit & Loans

    How Long Bankruptcy Will Affect You

    How long will the sad chapter of bankruptcy impact the rest of your life?
  2. Insurance

    Umbrella Insurance: You May Need It, Too

    If you have assets to protect – or just run a business from home – you could be unpleasantly surprised at how much you need umbrella insurance.
  3. Personal Finance

    The World's Most Luxurious Vacation Retreats

    White sand beaches, nature preserves, amazing hot springs...if you're looking for heaven on earth, these spots qualify.
  4. Budgeting

    10 Ways to Save Money at the Farmers' Market

    Strategic shopping can help your budget as well as your health.
  5. Personal Finance

    Protect Your Home From Medicaid Liens

    Plan ahead for long-term care needs to protect your home and your estate.
  6. Home & Auto

    Avoiding the 5 Most Common Rent-to-Own Mistakes

    Pitfalls that a prospective tenant-buyer could encounter on the road to purchase – and how not to stumble into them.
  7. Professionals

    Chinese Slowdown Affects Iron Ore Market

    The Chinese economy's ongoing slowdown is having a major impact on iron ore demand.
  8. Trading Strategies

    Who Actually Trades or Invests In Penny Stocks?

    Although penny stocks are highly speculative, millions of people trade them daily. Here are 10 different types who do.
  9. Personal Finance

    Financial Analyst Cover Letters That Get You Hired

    Crafting a strong cover letter for a job can increase your chances of standing out from the crowd and landing an interview. Some techniques that help.
  10. Chart Advisor

    4 Stocks Still Flashing Buy Signals

    In the midst of volatility and a big market sell-off last week, these stocks are flashing buy signals.
  1. Record Date

    The cut-off date established by a company in order to determine ...
  2. Supply

    A fundamental economic concept that describes the total amount ...
  3. Purchasing Power

    The value of a currency expressed in terms of the amount of goods ...
  4. Investment Banker

    Someone working at an institution raising capital for companies, ...
  5. Yield To Maturity (YTM)

    The total return anticipated on a bond if the bond is held until ...
  6. Gross Profit

    A company's total revenue (equivalent to total sales) minus the ...
  1. Are stocks real assets?

    Stocks are financial assets, not real assets. Financial assets are paper assets that can be easily converted to cash. Real ... Read Full Answer >>
  2. Why would someone change their Social Security number?

    In general, the Social Security Administration, or SSA, does not encourage citizens to change their Social Security numbers, ... Read Full Answer >>
  3. Are spousal Social Security benefits taxable?

    Your spousal Social Security benefits may be taxable, depending on your total household income for the year. About one-third ... Read Full Answer >>
  4. What are the best ways to sell an annuity?

    The best ways to sell an annuity are to locate buyers from insurance agents or companies that specialize in connecting buyers ... Read Full Answer >>
  5. How are non-qualified variable annuities taxed?

    Non-qualified variable annuities are tax-deferred investment vehicles with a unique tax structure. After-tax money is deposited ... Read Full Answer >>
  6. Are spousal Social Security benefits retroactive?

    Spousal Social Security benefits are retroactive. These benefits are quite complicated, and anyone in this type of situation ... 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!