The EUR/USD pair rose during the session on Wednesday, as the US GDP revision came out horribly. With that being the case, the market sold off the US dollar, and by extension the Euro of course got a boost in reaction. The market still appears to be rather tight though, and because of this am not interested in placing any serious money into it. With that, the most likely thing I will be doing is simply observing this market.
As I’ve been saying for a couple of weeks now, I am using this market more or less as a barometer of Euro strength or weakness, and placing trades for or against the Euro in other markets. That being the case, I do think that this market is important, but with so much resistance just above the 1.3650 level, and so much supportive action at the 1.35 level, it’s really difficult to take this market seriously at the moment.
Bullish for the moment, but ultimately it’s still a sideways market
At the moment, the market looks rather bullish, but I don’t think that the market can break out anytime soon. To be honest, I don’t even see the catalyst that could change things, and as a result it’s very possible that this market simply slams around and is only best suited for short-term traders that are looking for 20 pips or so at a time.
If we do fall from here, I see a significant amount of support near the 1.3550 handle as well, although the real support is at the aforementioned 1.35 handle. There are so many different places that markets can find trouble at that the pair is of very little interest to me, and quite frankly I suspect that most of the summer will be stuck in this range. In fact, I think that this could be the summer range that we are looking at, thereby making this a market that could eventually be explosive, as markets can’t sit tight forever, but until we get some type of impulsive candle, there’s no reason to risk money.
