EUR/USD – Support Level Test Coincide Volatility

The U.S Dollar has gained swiftly against many major currencies on safe haven trading on geo-political turbulence between the United States and North Korea. The Euro has come off of it highs against the U.S Dollar as nervous traders have sold the European currency in mass.

The EUR/USD pair is testing an important support level, just above the 1.17000 mark, August lows. The H4 interval chart presents an inverted Cup and Handle, short-term breakdown pattern, exactly at the current juncture.

In times of market turbulence and external forces are influencing the markets, volatility is peaking up and currency pairs’ exchange rates are rising and falling, while ignoring price support and resistance levels.

Although, short-term technicalities suggest trade set up, it is very important to take into consideration the current market conditions as a key factor of the market movements.

It is nice to know that

The global FX markets average turnover at 2016 stood at $5.1 trillion per day, according to the 2016 Triennial Survey.

The US dollar is the world’s most traded currency. In 2016, It was on one side of 88%, up from 87% in 2013, of the global Forex trades.

The Euro market share in 2016 was 31%, down from 39%, since the beginning of the euro area sovereign debt crisis in 2010.

The EURO versus the U.S Dollar, is the most traded currency pair in the world by far, with $1.172 trillion replacing hands on a daily basis, reflecting 23.1% of the FX market turnover.

Yaron Mazor is a senior analyst at SuperTraderTV.

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