EUR/USD Daily Outlook- April 18, 2014

The EUR/USD pair tried to rally during the session on Thursday, but you can see that the area above the 1.350 level offered enough resistance to push the market back down. Because of this, I feel that this market forming two shooting stars in a row is a relatively bearish sign. The biggest problem we have here is that the 1.38 level is the beginning of some support, as just as it typically is, the euro is going to be a pain to be bothered with.

The market should find a lot of noise below, so even if we break down it’s not exactly going to be the easiest trade to take. Technically, we did form a lower high recently, so that of course is a negative sign as well, but it’s just one of those markets that too many things are moving at one particular time, and that far too much is currently swirling around in the headlines to digest at any given moment.

Don’t get hung up on one pair.

Quite frankly, as an analyst I am often told to write about this particular pair. Nonetheless, I don’t actually traded real life very often. It’s been that way for some time, simply because it’s been so choppy that it’s much more difficult to trade this pair than it once was. Yes, I realize that most of you are out there looking at the two pips spread as a great reason to traded, quite frankly that’s ridiculous, as the difference between a two and a five pips spread shouldn’t be a major concern for you in any trade you take.

That being said, I have been using this pair has a bit of a tertiary indicator for the Euro itself. This pair indicates whether or not there’s going to be Euro strength, and as a result I can apply what I see in this market from a short-term standpoint to another market such as the EUR/JPY pair. With that being the case, quite frankly I can’t be bothered to be in this market as there is no clear move in one direction or the other over the next 24 hours.

EURUSD Daily 41814

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.