Waiting For the Right Opportunity....
When using the signal it is important to wait for the right opportunities to short into this sideways market. You might say, "how can you say that it is sideways when it seems to be moving up and has been for the past year or so"?
I would agree in most cases but you need to look at the rather anemic range that the EUR/USD has stayed in for the past two to three years. It has rarely moved out of an 800 pip range that it has been in other than on two other separate occasions in which the EUR/USD moved a little over a thousand pips and then back fairly quickly. If this doesn't define a long term sideways market then I don't know what does. That is why it has become so hard to trade, for the simple reasons that the currency pair has not trended in quite some time. Most traders look at the Eurozone and fundamentally see that the currency should be shorted. I would agree with them but for whatever reasons it remains sideways.
I suspect a lot of it has to do with the anemic range of the Dollar over the past two years since it bottomed around four years ago.
Until the Dollar stages a bit of a rally we will see the EURO continue to move sideways. The EURO currency is not really built on anything and the countries that use it need it substantially lower to sustain any sort of recovery. If you are playing a short term game then it is very difficult to trade the pair in this sort of market as it plays right into the market maker hands to push it easily wherever they want it to go without much opposition.
So we wait.
Tomorrow should see the currency pair move up a bit to get some more stops as I suspect the Dollar index will move down but both should continue to be range bound for the near term.
Stay tuned.
I would agree in most cases but you need to look at the rather anemic range that the EUR/USD has stayed in for the past two to three years. It has rarely moved out of an 800 pip range that it has been in other than on two other separate occasions in which the EUR/USD moved a little over a thousand pips and then back fairly quickly. If this doesn't define a long term sideways market then I don't know what does. That is why it has become so hard to trade, for the simple reasons that the currency pair has not trended in quite some time. Most traders look at the Eurozone and fundamentally see that the currency should be shorted. I would agree with them but for whatever reasons it remains sideways.
I suspect a lot of it has to do with the anemic range of the Dollar over the past two years since it bottomed around four years ago.
Until the Dollar stages a bit of a rally we will see the EURO continue to move sideways. The EURO currency is not really built on anything and the countries that use it need it substantially lower to sustain any sort of recovery. If you are playing a short term game then it is very difficult to trade the pair in this sort of market as it plays right into the market maker hands to push it easily wherever they want it to go without much opposition.
So we wait.
Tomorrow should see the currency pair move up a bit to get some more stops as I suspect the Dollar index will move down but both should continue to be range bound for the near term.
Stay tuned.
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