The EUR/USD pair tried to rally at the open on Monday, but as you can see we found far too much in the way of resistance in order to continue going higher. With that, it appears that there is a significant amount of selling pressure. However, I have a lot of concerns about trading this pair right now as the liquidity would have been very thin during the Monday session, as the Europeans are still celebrating Easter during that session. So having said that, I don’t read too much into the candlestick in general.
What I do notice is that the 1.38 region is somewhat supportive and that there is quite a bit of support below as well. A lot of noise all the way down to the 1.37 handle exist and as a result I find it almost impossible the short at this point. Yes, I recognize that if we break down below the lows from the Monday session we would probably head to the 1.37 handle, there are going to be much easier trades out there to take than this one.
Bored with this pair.
Quite frankly, I’m absolutely bored with this pair. It seems to have almost no trend half the time, and even when it does it simply chops around. This is a pair that a lot of new traders like because of the small spread, but quite frankly I feel that this is a market that’s essentially built for suckers at this point. The moves that are made in this market are so choppy that it’s one of the most nerve-racking pairs to trade at times.
If you look at the charts, you recognize that there are time periods of a few weeks here and there that have a nice trend, but quite frankly most of the moves in this market are back and forth and very short term. In that case, it’s almost impossible to make any real profits as the market will shake out most traders due to erratic behavior, as it’s very difficult to watch profit and loss statement go up and down. Quite frankly, I can’t be bothered.
