Euro falls initially on Friday only to find buyers

The EUR/USD pair has been very noisy during training on Friday, breaking down below the 1.21 handle, but ultimately trying to break above it again. It looks as if the market is ready to go higher, but I think that we need to clear the 1.2150 level to continue going to the upside. The 1.2350 level above there would be a target, but obviously it’s going to take a lot of work to get there. Alternately, I think that the 1.2050 level will offer short-term support, and a breakdown below there will more than likely have the market looking towards the 1.20 level, which of course of the large, round, psychologically significant level.

I think this is a very dangerous market to be involved in right now, so I would wait for some type of impulsive move to go long, but we have seen a lot of negativity as of late, so quite frankly I think there are easier places to make money in the Forex markets currently and therefore I don’t have a lot of interest in putting a lot of work into this market. In general, this market should be rather noisy, and that should continue to be one of the major factors in this market. In fact, I would pay attention to where the EUR/USD pair goes, and then perhaps trade the Euro against other currencies in the same direction. For example, this pair rallies you might be interested in going long of the EUR/CHF pair as it will be less noisy.