The EUR/USD pair rose during the session on Thursday, breaking the top of the previous session highs from Wednesday, and even more impressively breaking the top of the shooting star from the Tuesday candle. However, it appears that the 1.37 level has offered enough resistance to keep the market down, and as a result we will more than likely see this market struggle here. However, what I find most interesting is the fact that there has been such resistance here that I wonder whether or not we are going to pull back. I do not like this pair these days, it simply chops around back and forth.
That the market goes above the 1.37 level, it could very well try to go all the way to the 1.38 level, but I find it very difficult to believe that the market is going to go much higher than that. Quite frankly, there really isn’t much to push the market in one direction or the other right now, and if nonfarm payroll numbers haven’t been able to do it, you have to begin to wonder whether or not anything will?
The EUR/USD as a tertiary indicator
With the way the markets been behaving lately, this pair has been more or less a tertiary indicator, meaning that it’s very difficult to trade the pair itself, but you can use it to gauge whether or not the Euro is strengthening or weakening. By knowing that, you can match it up against other currencies, and trade those pairs. Quite frankly, I don’t see a compelling reason to be involved in a market that just slams around back and forth in a fairly tight range. Looking back over the last couple of months, sure, there have been impulsive days to the up and downside. However, most of the days have simply been back and forth.
I am more interested in trading the EUR/JPY or the EUR/CAD pair for example. Either way, I look at this chart to give me an idea of whether not the Euro is strengthening or weakening that particular session. Right now, that’s about as much use as I have for this market.