Traders should be braced for volatility this coming week. If current support levels fail to hold back the tide of selling seen late last week, the EUR/USD could fall below the 0.97000 mark rather easily. The notion that the 0.96000 is oversold may prove to be false also considering the depths the EUR/USD hit only two weeks ago. While optimists got a hold of the markets early last week, nervous conditions have appeared quite easily again, and the worst of nervous market conditions may not be over. If the EUR/USD were to fall below the 0.96000 mark and challenge the 0.95000 ratio it would not be a technical surprise.
Traders who are convinced the EUR/USD is oversold and want to be buyers should be careful. While in the long term bullish speculators may be proven correct, behavioral sentiment is weighing down the EUR/USD and this trend may not disappear in the near term. Buying the EUR/USD should be done with realistic targets and not be overly ambitious.
Having failed to climb above the 1.00000 in the past week of trading, climbing above this mark in the coming week looks very doubtful. Traders may want to aim for polite reversals higher which test the 0.99000 level, but anything much above this in the coming days would be rather surprising.
Traders who are convinced the EUR/USD is oversold and want to be buyers should be careful. While in the long term bullish speculators may be proven correct, behavioral sentiment is weighing down the EUR/USD and this trend may not disappear in the near term. Buying the EUR/USD should be done with realistic targets and not be overly ambitious.
Having failed to climb above the 1.00000 in the past week of trading, climbing above this mark in the coming week looks very doubtful. Traders may want to aim for polite reversals higher which test the 0.99000 level, but anything much above this in the coming days would be rather surprising.
