The Euro continues to see a lot of noisy trading, as we are obviously in the same range we have been in for some time now.
EUR/USD
The Euro has gone back and forth during the trading session on Friday as we continue to see a lot of noisy behavior. This has been the way for some time now, and it doesn’t look to be changing.
The markets are bouncing around just below the 200-day EMA which of course the 200-day EMA will offer a bit of a directional signal for some. That being said, the market is likely to continue to see the area between the 1.15 and the 1.16 levels as the battleground, but even if we break down below 1.15, the 1.14 level should be supported.
A Nimble Approach for Short-Term Traders
All things being equal, I think the market is likely to continue to be very noisy and choppy. With that being the case, I do believe it is very difficult to put a big position on for any length of time whatsoever.
The environment that we are in is just simply choppy and noisy and therefore you have to keep it small if you are trading in this market. If you are a short-term trader, then it makes a certain amount of sense that you might be attracted to this market, but you are going to be nimble.
As far as longer-term trade is concerned, I find it very difficult to try to hang on to anything here. I do believe ultimately the US Dollar probably wins, but I also recognize that this is a very noisy affair, and I just don't see that changing. You are looking at 30 to 40 pip moves most of the time with the 1.16 area that extends up to the 1.1650 level offering a little bit of a ceiling.