The EUR/USD pair fell most of the day on Wednesday as the “risk off” trade came back into play. Looking this chart, we actually have a decent sell signal at the beginning of the session, but you can see this is been completely reversed again.
This was predicated upon the headline events, mainly talking points of the Speaker of the House and the President during the session. In other words, we are now in a situation where the U.S. Congress will have complete control of this currency pair. For the moment however, it does look like we’re going to try to go higher. A break of the day’s highs would technically be a buy signal, but we are more than likely going to ignore this pair for the next couple of sessions as the volatility should do nothing but increase. We are not at either one of the extremes of the consolidation area, so we don’t see any “Grade A” type of trades.
Written by FX Empire