EUR/USD range bound in light trading on Friday

The EUR/USD pair did very little during trading on Friday, but that’s not a huge surprise considering that it was Good Friday, and European banks were away. The liquidity would have been very thin, and therefore it makes sense that we would struggle to find directionality. I believe that the market is probably going to find a bit more negativity in the short term though, based upon the weekly shooting star. There is an uptrend line underneath, and that is more important longer-term from what I see. I think that the range bound attitude to this market should continue to be a major factor. Longer-term, I think we’re trying to build up enough momentum to break above the 1.25 handle, but if we were to break down below the uptrend line, and the 1.21 level after that, the market probably comes undone.

On weekly chart, we have broken above a bullish flag, and that should measure for a move to the 1.32 handle, but obviously we have a lot of work to do. Currently, I still play this market by buying the dips, but I’m not looking for major moves in the short term. I believe it’s only a matter of time before we find reasons to rally, and because of this I’m being patiently bullish in this market and taking advantage of value when it appears. However, I’m not foolish enough to put a lot of money into this market right away, and I believe this market may behave like this for a while.