Consolidation Ahead of Good Friday


Traders should keep in mind that due to the bank holiday on Friday, liquidity will be limited. 

  • The EUR/USD recent trading activity has been somewhat subdued, with the markets showing a willingness to sit within a particular range.
  • Investors are waiting for Friday’s Non-Farm Payrolls report, which is likely to influence the market’s next move.
  • This could explain why market participants are taking a break and waiting for more definitive data before making any significant moves.
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While the euro is currently at an extremely overstretched level, traders should expect more range-bound trading ahead. However, it’s worth noting that Friday is Good Friday, and many major banks and firms will be closed. This means there may not be much activity on Friday, except for any announcements made at 8:30 AM Eastern Standard Time.

At present, the euro is in an area that presents a potential double top, which traders should keep a close eye on. If this level is not broken, it could significantly influence the euro’s next move. The 1.1050 level currently acts as a barrier that the euro has yet to break through. If the euro plunges from here, it could test the 1.08 level, which has proven to be an important support level in the past, followed by the 50-Day EMA just below it.

Traders should keep in mind that due to the bank holiday on Friday, liquidity will be limited. As a result, traders should exercise caution when interpreting any sudden movements in the market. It’s best to keep position sizes small and wait for liquidity to return on Monday. However, even then, it may take some time for the market to gain momentum as several major European countries also have a bank holiday on Monday.

Overall, the euro remains in a precarious position, with the potential for a significant move soon. However, with limited liquidity and the upcoming bank holidays, navigating the next few trading sessions may be challenging. As always, traders should keep a close eye on market conditions and adjust their strategies accordingly. It’s also important to remember that sudden moves in the market can occur at any time, so traders should be prepared to respond quickly and decisively when necessary.

In conclusion, while the euro has been quiet in recent trading sessions, there is still the potential for a significant move soon. The upcoming Non-Farm Payrolls report and the bank holidays on Friday and Monday are likely to influence the euro’s next move. With limited liquidity and the potential for sudden moves, traders should exercise caution and stay informed on market conditions to make the best possible decisions.

EUR/USD

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