EUR/USD continued choppiness over the past week

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Updated: Apr 14, 2018, 05:17 UTC

The EUR/USD pair has initially tried to break out to the upside but turned around to form a bit of a shooting star for the week. However, there is also a hammer from the previous week, and of course the uptrend line that you see on the chart. Because of this, I think that the market is going to continue to be very noisy, but I think the next week could be the deciding factor as to where we go next.

The EUR/USD pair has initially rally during the week, breaking above the 1.2350 level handily. However, we ended up rolling over and forming a bit of a shooting star which is preceded by a hammer. Consequently, the candle before that is a shooting star. In other words, this pair continues to be a choppy mess, and this makes longer-term trading difficult. When I look at this chart, I recognize that there is a bullish flag underneath that has been broken to the upside, and it should measure for a move to the 1.32 level.

However, when I look at this market I recognize that if we break down below the uptrend line, we could very easily head back to the 1.21 handle. That being said, I think that longer-term traders are going to have a hard time shorting this market. The risk to reward ratio simply isn’t there. I also recognize that the 1.25 level above is massive resistance, so I believe that longer-term traders will need to be very patient in waiting for profits. I still believe in the uptrend, but we may need to have some type a pullback to offer enough value to get people interested in going long. Until then, I suspect you are going to be better off using short-term range bound strategies.

EUR USD Forecast Video 16.04.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.