EUR/USD continued choppiness over the past weekThe 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.