EUR/USD has remained below 1.00000 all past week, but its trading results have demonstrated strong price action that is likely proving opportunistic.

EUR/USD speculators who enjoy volatility receive plenty of price action daily. EUR/USD remains below parity and the currency pair could not trade above 1.00000 all last week. Oddly enough, the inability to climb above 1.00000 didn’t even happen as the US Federal Reserve was set to proceed with its interest rate hike last Wednesday, when some financial firms reportedly been able to bet aggressively on the EUR/USD by buying. Muted buying is technically intriguing.

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EUR/USD climbed early Wednesday to briefly hit highs near the 0.99750 mark. This upward momentum was probably based on the notion, which turned out to be wrong, that the US Federal Reserve would offer a more accommodating interest rate policy. In fact, the US Fed not only raised its interest rate by the expected 0.75% increase, but essentially said it was too early to start thinking about a change in interest rate policy. .

Trading EUR/USD below 1.00000 may attract bullish speculators, but should it?

After the US central bank maintained its fiery monetary policy with “incandescent” rhetoric as it continued to sound the alarm bells about inflation, EUR/USD quickly fell. The 0.98300 mark was quickly seen Wednesday night via selling. And then on Thursday, after the Bank of England’s recession chatter was delivered with another interest rate hike, EUR/USD fell further to a mark near 0.97250.

The European Central Bank raised its interest rate almost two weeks ago. However, the ECB is seen as rather unimpressive when it comes to its rhetoric regarding the battle to engage inflation across Europe. EUR/USD has now been struggling against parity since mid-August and failure to sustain highs above 1.00000 seems to be becoming the norm. Behavioral sentiment remains fragile and perhaps financial institutions are getting used to a range of 0.97500 to 0.99500. Taking advantage of resistance has probably proven useful for some traders.

  • Choppy conditions were quick on EUR/USD, and traders looking for upward momentum when support is hit can keep betting. The 0.97500 mark appears to be a technical area that buying has manifested.
  • Yes, EUR/USD can certainly trade above the 1.00000 ratio, but resistance looks quite strong above the 1.00800 mark.

Range Trading and New “Normal” for EUR/USD

EUR/USD may still require some attitude adjustments for some speculators who believe the currency pair is oversold. In the long term, the bullish speculators will likely be right, but until sustained price action is achieved above 1.00000 for more than a few days, maybe even a few weeks, the price of EUR/USD may simply be within its current range. kingdoms. The shadow of the US Federal Reserve remains strong, especially as it threatens further hikes to come in the medium term.

EUR/USD weekly outlook:

The speculative price range for EUR/USD is 0.96800 to 1.01000

Can Traders Take Advantage of the Relatively New Low EUR/USD Range? Risk management is essential to guard against sudden waves of changes in value. EUR/USD is in a long-term downtrend and while some speculators may think the time is right for a technical direction change, that might not happen in the near term. Trading conditions in global markets remain nervous and economic clouds continue to create pressure in the European Union. EUR/USD hit a low near 0.97250 last week, which came in view of the previous week’s lows. Traders who want to be buyers when support is tested cannot be blamed, but they should be careful.

EUR/USD may begin to show sustained support for speculators. The fact that EUR/USD was able to climb higher on Friday and end near its high for the week is technically interesting. If EUR/USD opens with solid gains to start this week, it is not excluded that EUR/USD could climb above parity and challenge the highs seen on the 26the of October, near the 1.00950 mark.

Looking for quick results may prove to be the best risk-taking strategy in the days ahead. Traders should also keep in mind the US midterm elections taking place on Tuesday and could cause volatility should the results produce a surprise.

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