EUR/USD Price Forecast – Euro choppy during Thursday session

The EUR/USD pair was very noisy during trading on Thursday, as we continue to see a lot of noise in this market. The 1.16 level continues to be very important, at least from a psychological standpoint. When I look at this chart though, I recognize that we are in a larger consolidation range that extends from 1.15 below to the 1.1850 level above. At this point, I suspect that we are probably going to be looking for upward moves, simply because we are closer to the bottom of the range. That doesn’t mean we can’t pull back, but I look at those as potential value opportunities.

The month of August is notorious for a lack of liquidity as many of the world’s largest traders are away for holiday. That being the case, don’t be surprised if we stay within a relatively tight range. However, I look at the longer-term charts and they tell me that we will probably stay within the 350 pip range anyway. With that, I have been using a range bound strategy to great effect, using the stochastic oscillator as one of my guides.

I believe that market participants don’t know what to do at the moment, so that is reflected in the charts. If we can drop closer to the 1.15 level, I’m very comfortable in buying this market and perhaps even adding. If we can finally break out of this range, to the downside we could go as low as 1.13, and the upside 1.20. However, were going need something that we haven’t seen in a while to do that: certainty.

EURUSD analysis Video 10.08.18