The EUR/USD pair continues to be one that’s almost impossible to trade for the Tuesday session. Essentially, we are going back and forth in a roughly 50 pip trading range, as isn’t much room to be involved in. Quite frankly, when a market is this tight it only takes one small mistake to start losing money. Because of that, I have been out of this market for some time, and have been very public about that.
In fact, I believe that the entire market is essentially stuck between the 1.35 level on the bottom, and the 1.38 level for the longer-term. In the meantime, it’s even worse than that: as we’re stuck between the 1.37 level and the 1.38 handle. There a lot of different reasons for this, but quite frankly doesn’t really matter what they are, as the environment just simply isn’t conducive for making much in the way of profits.
Trading the Euro against other currencies.
Far too many newer traders get hung up on this particular pair. I suspect that it’s because the spread is so tight, even at the worst the brokers. However, the spread is in everything, and unless you’re overleveraged, the difference between a 2 pip and 5 pip spread should matter much. With that being said, I can’t remember the last trading took in this pair. It’s been a few weeks at the very least, and I’m sure that was only a short-term move. However, that’s not to say that I don’t pay attention to this market, and not only because they pay me to!
I do use this market as an indicator of Euro strength, and when I’ve been doing recently is playing the Euro against the Australian dollar, Canadian dollar, and Japanese yen. On a day that the Euro can do fairly well against the US dollar, it tends to do much better against some of these other commodity-based currencies. It’s been that way for some time now, and now as a result I have been paying attention to this chart and using it to decide whether or not I want to go long EUR/CAD, EUR/AUD, or EUR/JPY. Granted, I also look at the particular setups on those charts, but recognize that strength in this market or at least something close to it gives me just another reason to start buying the Euro.
