Is Eur/Usd erratic?

Trading Discussion
1

Now… i know that asking this question kinda is like answering it… but I really don’t understand what is going with this pair lately…

We got a great report on Friday that should have been bullish all the way for Usd but it ended the day to the EUR’s favor. Then today we saw worst than expected number for Usd but the bulls took over and brought the price down…

I find it difficult to explain and far more to predict the upcoming days as the pair doesn’t seems to be making any sense when look into from a fundamental perspective… does anyone else thinks like me or does anyone has a good explanation for what is going on?

Thanks in advance for your time guys and your help is appreciated!

2

This pair, as it is the most heavily traded across all market centres, has a reputation for never being able to establish and sustain firm trends. As soon as price is up a little, many traders see an opportunity to sell and drive it back down. And vice versa. Some short-term traders avoid it, unless they’re very adept at range trading.

3

it is the usual scenario
smart money wants to buy with the lowest possible price
so they pull average traders into selling and consequently driving price down

4

I mean to me, it’s pretty clean and simple. But, I think that’s because I’m more of a technical trader.

1 Like
5

Agreed. Look at the daily chart and it’s been bouncing off a S/R channel down since May 2018.

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6

yup, I noticed! idk, it’s just easier to look at major past levels of support and resistance, and go from there. The past always repeats itself

7

I see your point. I must admit that I didn’t really paid a lot of attention to the technicals on that pair and focused mainly on the fundamentals… That said, I think you’re right and I should review that part too… maybe the answer to upcoming reversal lies there as well. Thanks!

8

yes or not! Because Forex trading is 100% Unpredictable Market! Every currency pair which trader used for trading will be erratic or not…

9

If all forex markets were 100% unpredictable all the time, we would be unable to trade as there would be no point at which to enter any one of them long or short with a better than 50% probability of winning. I agree, its impossible to find these places 100% of the time and they are not 100% reliable even when you do find them. But they can be found.