Chris looks at the upcoming June 11 trading session in the EUR/USD forecast for today. Looking at the market, it is very obvious that the market is starting to tighten up quite a bit as the euro continues to show serious resilience. We are initially trying to rally during the session on Wednesday, but yet again found the 1.14 level to be a bit resistive. Because of this, we think that the market will try to reach back down towards the bottom of the hammer that formed on Tuesday.
While we do have a bit of an upward bias in this market, we also recognize that there are a lot of things to consider at the same time. One thing that could move the markets is the Retail Sales number out of the United States, and that of course can have an effect on the US dollar in general. With that, the market could be very volatile today, but ultimately we believe it’s only a matter of time before the market breaks out above the 1.15 level, which makes this a much easier pair to trade, as it would show a significant uptrend forming.
EUR/USD Forecast: Short-Term Trading
We find it very difficult to imagine that a longer-term trade is going to form itself anytime soon, and as a result we have to keep in mind that sometimes simply taking 20 or 30 pips in the marketplace is about the best you can do. We don’t like committing a lot of money to a market like this, but we do recognize that a lot of traders prefer to trade this particular currency pair. However, this looks a lot like a market that’s been flooded with high-frequency trading, and that of course can keep this market very volatile as well.
At this moment in time, neither Adrian or myself have an idea on what it would take for us to start selling this pair, but we do know it would be somewhere below the 1.10 handle. At this moment though, we find it difficult to believe that we’re going to break down below there without some type of headline. We remain bullish, but not foolish – knowing that the market isn’t going to go in one direction for any real length of time.
Below is our EUR/USD Forecast: