The EUR/USD pair went back and forth during the course of the session on Friday, but as you can see still doesn’t really want to go anywhere in general. The marketplace has been consolidating between the 1.35 level on the bottom, and the 1.37 level at the top. Because of this, the market it has been one that I have been staying away from currently, but short-term traders may be able to make quite a bit of profits in if you have the ability to trade ultra-short-term markets.
The 1.36 level course will be considered to be fair value, and that means the market will be attracted to it. The market will be thought of as one that will find its way back to that level, so if we fall, simply buying could be the way to go. On the other hand, if we go higher, shorting the market close to the 1.37 level would be the way to go.
This is also a tertiary indicator.
As far as I’m concerned, this market is also a tertiary indicator. With that being the case, I look at this market as one that tells me what to do with the Euro against currencies in general, as if it’s rising against the US dollar, I will look to buy other pairs such as the EUR/JPY pair. On the other hand, if we fall from here, I would expect the EUR/GBP pair to continue falling. Essentially, what I am looking to do is use the EUR/USD pair in order to decide which trending market I’m willing to trade. In the EUR/GBP, this is been one of those markets that has been trending downward in a strong way, so if the Euro starts to lose its strength, that’s a great place to start selling it. On the other hand, the EUR/JPY pair has been one that has found the significant support at the 101 handle, so I believe the market will bounce every time this market shows a little bit of strength, we should definitely see it in that market.
