The EUR/USD pair initially fell during the course of the session on Friday, but found quite a bit of support at the 1.08 level to turn things back around and form a bit of a hammer. That hammer of course is a positive sign, and as a result that should send this market looking for higher levels. If we can break above the top of the hammer for the session on Friday, I believe that this market will then reach towards the 1.10 level, which of course has been an area of resistance time and time again.
I believe that this market will struggle due to the fact that there is simply not enough economic news to move the market. I think this will continue to be a short-term trader’s type of market, as there are no clear movements between now and the end of the year as far as I can see.
I think that eventually the Euro will probably rally, but quite frankly I think also that the 1.15 level above is going to be very difficult to break out and above anytime soon, so having said that I feel I think that there will be plenty of trades to be had in both directions as there are more than enough various levels of both support and resistance that can move the markets.
Short-Term Charts Only
I’ve got no interest whatsoever in trying to hang onto a trade for any real length of time, because there is so much in the markets right now that we are having to pay attention to. After all, the European Central Bank looks likely to trying to add stimulus down the road, but at the moment, we also have the Federal Reserve which looks very unlikely to continue raising rates, at least in the short-term. With that being the case, there are a lot of different possibilities and therefore I feel that the markets are ripe for quite a bit of confusion. At this point though, I think that the only thing that looks somewhat stable and reliable is the consolidation area we are currently trading in.
