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Euro initially rallies, and then turns around during the week

By:
Christopher Lewis
Updated: Apr 21, 2018, 08:45 UTC

The EUR/USD pair initially rally during the week, testing the 1.24 level before rolling over rather significantly. The market remains in consolidation, so even though this is a negative candle, I don’t put too much into what we are seeing. In fact, I think that it is difficult for longer-term traders to be involved currently.

EUR/USD weekly chart, April 23, 2018

The EUR/USD pair initially tried to rally during the week but found enough resistance near the 1.24 level above to roll over and form a bit of a shooting star. Ultimately, this market does have a significant amount of support underneath though, and the 1.21 level underneath is the bottom of this overall range. Because of this, I think it’s easier to trade this market from a shorter-term perspective, perhaps looking for back and forth opportunities with the stochastic oscillator or something like that. I like the overall uptrend still, but obviously we are essentially stagnant over the last couple of months. Even though this is a very negative candle, it doesn’t necessarily prove anything.

The 1.21 level being broken down underneath will more than likely send this market looking towards the 1.18 level. The alternate scenario is that we bounce underneath current levels and continue the overall sideways action. If we can eventually break above the 1.25 level, I think that the market goes to the 1.32 level, based upon the bullish flag that we had formed on the weekly chart and have broken above. Ultimately, I think that the market should continue to see interest on dips, as it offers value. However, this is a very difficult market for the longer-term trader, and an extreme amount of patience would be needed for anybody trading this market. I favor the upside, but quite frankly I think there are better places to put money to work right now.

EUR USD Forecast Video 23.04.18

About the Author

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.

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