Euro saw a very tight range against the dollar Wednesday with a lack of fresh incentive to take action and a holiday in France likely sapping any interest to speculate. Ahead we may be facing more of the same given even more holidays with Germany joining the French on a break. The rest of the week as well has us facing a blank calendar suggesting it may be better to remain in the sidelines for EURUSD though part of us thinks it would be interesting to do a straddle, not a good idea when there’s no clear catalyst for price action.
Resistance
- 1.08125 – Friday Spike High
- 1.07886 – 50D Moving Average
- 1.07554 – Intraday Consolidation Resistance
Support
- 1.07351 – Intraday Consolidation Floor
- 1.06909/997 – Intraday Consolidation Lows / 20D Moving Average
- 1.06494 – Daily Consolidation Low
Given the very tight candle we will be ignoring the tail that we saw from Wednesday’s daily candle and see this more as indecision on the part of the market. Bias remains for the sell side with the bearish cross in stochastic and our focus will be on a break of the support at 1.07351 to signal further losses. The lack of market moving events though and holidays suggests we are better off looking elsewhere for greater liquidity behind any trade.
