The EURUSD pair broke higher during the session on Friday, clearing the top of both the Wednesday and Thursday candles after less than stellar US numbers came out.

That being the case, the market then would reach towards the 1.10 level above. That is resistance, and I think that break above there would be a very bullish sign, perhaps reaching towards the 1.13 level above, and then the 1.15 level after that. This is a market that has been consolidating between the 1.05 level on the bottom and the 1.15 level on the top over the last couple of years.

We are currently in the middle of the trading range, so we are essentially near “fair value.” With this in mind, I think that the market is difficult to trade for any real length of time, and I believe that short-term back and forth trading is probably what we will see over the next several sessions.

Short-term charts

I believe the short-term charts will continue to be the way forward, as we may have to consolidate in this general vicinity. If we did break above the 1.10 level, then I’m going to be a little bit more interested in buying. Alternately, if we can break down below the 1.0750 level, then we will probably go to the 1.05 handle. In the meantime, I believe that the market will continue to be very volatile and difficult to deal with, especially considering that the European Union is going through the various issues that we have had with the United Kingdom and other places such as that. Regardless what happens, you will have to keep your stop loss take, and be aware of the fact that the market is a bit directionless longer-term as the pair simply things around

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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