The EUR/USD pair went back and forth during the course of the session on Thursday, showing volatility yet again. We simply cannot do anything with this market right now, as it has been bouncing around in a relatively tight range. Don’t get me wrong, I think that there will be buying and selling opportunities for short-term traders, but at this point in time I am not personally comfortable in a market that seems to want to go back and forth. However, that’s not to say that there aren’t strategies they can work with this type of environment.
In fact, I think this market is essentially tailor-made for binary options at the moment. After all, you have a very obvious resistance barrier at the 1.13 level above, and the 1.11 level on the bottom. The beauty of the binary options of course is that if you buy a put at the 1.13 level, even if you’re wrong you can only lose a certain amount. On the other hand, if you are right you can take your profits rather quickly.
Overall upward bias though
I cannot help but notice that on the longer-term charts that it appears we are forming an ascending triangle. Because of this, I think that eventually we will break out to the upside but we are obviously not ready to do so yet. There are a couple different “stages” of a move higher than I see being possible. If we can break above the 1.13 level, I feel at that point in time will reach towards the 1.15 level again. A break out above there on the other hand, is a trend change and then it becomes a longer-term “buy-and-hold” type of situation.
Do not forget that there is an uptrend line just below, and that of course should keep this market somewhat afloat. Ultimately, because of this we are more than likely going to see plenty of buying opportunities every time we pull back on short-term charts.
