The EUR/USD pair has been the epicenter of a lot of noise lately, with the United Kingdom voting itself out of the European Union. Needless to say that cause quite a bit of volatility towards the end of the month, and as a result I believe that this market will continue to be the epicenter of a lot of noise. With perhaps the exception of the British pound, this will be one of the most closely followed currencies in the Forex world right now as there will be a lot of concerns as to whether or not the European Union could see other countries leaving.
With that, I believe that the previous uptrend line should now be resistive, and I don’t really have too much in the way of interest when it comes to buying the Euro, as I think there’s a lot of concern about that currency, and of course a lot of confusion. I believe that it is only a matter time before sellers enter this market again and again because quite frankly the United States is much more stable than the European Union.
Patience
I believe that patience will be what’s needed in this market, in order to sell what will undoubtedly be very volatile market. I believe that it’s going to be difficult to hang onto any trades in this pair for a longer-term situation, simply because I think that the headlines will continue to go back and forth in this market place and of course at any moment in time we could get noise out of the European Union or the United Kingdom. With that, I think you have to continue to favor the US dollar in general, but it should be noted that I think this market although negative, probably won’t melt down. Having said that, if we do get some other country calling for referendum, that would be disastrous. However, I do not expect that to happen anytime soon.
