EUR/USD Daily Outlook - May 6, 2013

Christopher Lewis

The EUR/USD pair continued to chop around during the Friday session, in response to the better than expected Non-Farm Payroll number out of the United States. Because of this number, there will now be a “risk on” attitude in the short-term, and I believe that this pair will be pushed and pulled quite a bit going forward.

The reason this pair isn’t’ going higher based upon the “risk on” attitude is that the European Union has so many y problems with this being said, it is almost impossible to find confidence for any real length of time in the Euro. It seems as if every time the Euro gains a bit of footing, the news will release a headline that sends the pair lower. Because of this, I have several friends who simply won’t bother trading this pair at the moment. The pair is typically the “bread and butter” of the average trader, but I cannot help but wonder whether or not the liquidity is as high as we are used to seeing.

The 1.30 level looks very supportive to me at the moment, and I think in order to break down below it will take something kind of special. The pair will more than likely try and find a range for the summer, and the area that we are trading in at the moment very well could be it – who knows?

Even the 200 day exponential moving average looks bored.

The 200 day EMA is placed on this chart, and as you can see we are simply going sideways as far as that moving average is concerned. The market looks like it is ready to go to sleep, and this is part of what makes me think that the market is about to find a range for the warmer months.

However, there is the possibility of headlines moving this market. (Always) This being said, there is also the possibility of money moving into the United States and out of Europe as the USA looks so much stronger at the moment. However, old habits die hard, and the market is used to buying this pair on “good news.” In other words, we are going back and forth ultimately.

EUR/USD Daily

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.

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