EUR/USD Tightens Up, Trades Above The 1.1700 Handle
Shain Vernier • 1 min read
Mondays can be challenging to trade as conditions are often far from optimal. Many traders are leery of committing capital early in the week, choosing to evaluate the markets instead. This has certainly been the case today, with tight daily ranges for the forex majors and U.S. indices. The EUR/USD is a prime example of this phenomenon, posting a modest 50 pip range.
Today’s big geopolitical news has come from the Trump/Putin meeting. Denials of election tampering and talk of extending ballistic missile treaties have been the primary headlines. Even though sentiment from the meeting seems to be very positive, there isn’t a whole lot of risk being taken. Unless you are trading WTI crude, volatility is fairly calm.
The Euro has gained ground against the USD for the last two sessions. Of course, the downtrend of 2018 is still massive, with the EUR/USD struggling to gain any bullish momentum.
Here are the levels to watch for today’s late U.S. session:
- Resistance(1): Swing High, 1.1790
- Support(1): Bollinger MP, 1.1655
- Support(2): Daily SMA, 1.1618
Bottom Line: In such a tight market, playing a rotational strategy is a good way to rack a few pips. A buy from above support at 1.1657 is a positive entry to the bull. A modest profit target of 10-12 pips is ideal, using a 1:1 risk vs reward ratio.
Slow markets are certainly a challenge. With a bit of luck, U.S. FED Chair Jerome Powell’s commentary due out later this week will shake the EUR/USD out of its relative slumber.