The EURUSD pair initially dipped lower during the day on Friday, but then shot higher impulsively during the American session.

It looks as if the market is trying to find its footing, and eventually should go looking for higher levels. With this in mind, I am a buyer of dips overall, but I recognize that the longer-term chart suggests that perhaps we might see a bit of consolidation in this general vicinity.

Certainly, the most recent impulsive move has been to the upside so it makes sense that buying the dips is probably the safest way to trade this market. I think that the 1.17 level underneath is massively supportive, and therefore I don’t think we break down below there anytime soon.

However, as I mentioned it looks a bit consolidated on the weekly chart, so it’s likely to be a very difficult market to trade for more than short-term opportunities over the next couple of sessions.

Editor’s Note: Equity investors/traders can use the Currency Shares Euro Trust (FXE, quote) ETF to take positions in the euro without a FOREX account.  The ETF looks to track the price of the euro (EURUSD), minus ETF fee. The fund seeks to reflect the price of the euro with the shares representing a cost-effective investment relative to investing in the FOREX market.

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