The EUR/USD pair rose during the course of the session on Wednesday, as the Federal Reserve looks set to continue with low rates for the near-term. That being the case, I feel that this market should continue to bounce around in this general vicinity, and I think that it’s possible that the 1.35 level on the bottom, and the 1.37 level on the top could be the defining areas for the” summer range.”
With that being the case, I look for short-term trading opportunities, buying at the bottom, and selling of the top. It’s a lot like shampooing your hair, it’s a simple matter of rinse, rather, repeat. With that being the case, we will eventually breakout, but at the end of the day if you can get several wins in a row, you’re going to make money.
Ultimately, I think this market will continue to be as difficult as ever.
I believe that this market should continue to be difficult to deal with, as it has been for some time. This market is being flooded with high frequency traders, and as a result there is no such thing as a longer-term move at times. Because of this, I feel that the market shouldn’t be trusted for anything more than a short-term move, and that tells me that this market can also be best used as a barometer of Euro strength or weakness, and as a result I will not only be trading this market short-term, but I will be paying attention to the latest move in order to determine what to do in other euro related pairs, and as a result this chart still continues to be important to me.
I believe that the next move is probably higher, but I really struggle to imagine this market going above the 1.37 handle anytime soon. I think again that we will more than likely have moves that consist of 30 pips at a time or so, in anything beyond that is probably asking a bit too much out of the market that is simply aggravating at best.