Friday, December 22, 2017

EUR/USD May Be Consolidating Next Week

This year the winter holidays coincide with the normal work week and that is why the market will open and close as usual. Despite that winding down of the market can be felt and most currency pairs are range-bound.

Still, the EUR/USD pair is attempting to form a bullish pin bar on the H4 time frame which should close in less than half an hour and if it does close in that manner it would be a signal for a weak rally to 1.1870 – 1.1890.

The bars that have formed on the D1 time frame, however, are a signal for a drop to 1.1820.
In other words I don’t think we can expect anything more than consolidation that can either be traded only on the smaller time frames or we should avoid trading altogether until the holidays pass and the market becomes volatile once again.