EUR/USD fall significantly during Friday session
The EUR/USD pair continues to be very noisy during Friday, as we continue to go back and forth, with the 1.21 level underneath being the bottom of the larger consolidation, and the 1.25 level above being the top. The market has been very difficult to trade for a significant length of time, but I think short-term traders will continue to be attracted to this market, perhaps in a range bound system that feature something along the lines of the stochastic oscillator. I believe that we will continue to see a lot of noise, and of course the US Dollar Index needs to be followed, as it is so highly correlated with what happens here.
Headline risk continues to be a major issue, as it has been speculated that the ECB has no interest rate hike path after the ending of QE. In other words, they’re not necessarily looking to raise rates. The problem with these types of headlines is that they are not backed by anything and suddenly appear at places like Twitter. Ultimately, I think that we will continue the overall consolidation, so I’m looking for some type of bounce to start buying as we go lower. Eventually, we will get some type a breakout, but I don’t see it in the short term, and when I look at the longer-term charts I recognize that we have broken above the top of a bullish flag, and technically that means that we should be looking towards 1.32 down the road.
EUR/USD Video 23.04.18
This article was originally posted on FX Empire