(MENAFN- Daily Forex) The eur/usd has seen solid price velocity upwards in the past twelve hours after economic data and U.S Federal Reserve notes added fuel to bullish sentiment.
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Speculators must acknowledge that Forex trading volume will be lighter than normal today, and this includes the EUR/USD which will be affected by the absence of U.S banking institutions.
Traders should be braced for sudden developments with EUR/USD price values that appear to emerge without merit technically if large orders are factored within an unbalanced marketplace. Having given the above holiday trading warning, speculators have a reason to feel bullish about the EUR/USD near-term .
The trajectory upward in the EUR/USD which has been demonstrated recently got an additional injection of jet fuel added to positive behavioral sentiment yesterday.
U.S. economic data via the Flash Services and Manufacturing PMI statistics came in weaker than expected. But more important was the release of the Federal Reserve Meeting Minutes, which implied that several key members of the U.S central bank want to start backing away from aggressive interest rate hikes.The emergence of Fundamental Dovish Rhetoric Important Sign for EUR/USD Trading
Technically the EUR/USD has been within the grasp of a long-term bullish trend, but the constant drift lower started coming to an end in late September when the currency pair hit the 0.95400 level. Since the 3rd of November when the EUR/USD was trading near 0.97350 the Forex pair has gradually crept higher as financial houses showed clear signs they no longer believed the U.S Fed would be able to maintain its hawkish interest rate policy. Yesterday's release of the Fed's thinking via the 'Minutes' report showed this outlook is likely correct.
The Thanksgiving holiday in the U.S means that today and tomorrow's light trading volume will produce choppy conditions. Traders who pursue the EUR/USD short-term need to be careful. Until full trading volume returns after this weekend, the EUR/USD may see very quiet price action mixed with sudden bouts of lightning-fast spikes. Risk management is urged near term. The pursuit of Emerging Bullish Trend is Tempting but Caution should be Used
EUR/USD traders who want to pursue upwards price action and hope to catch significant higher velocity cannot be blamed.
However, day traders need to be ready for choppy conditions because of holiday trading and its typical lack of volume, which tends to cause spikes that often cannot be explained.
Looking for upside movement via buying of the EUR/USD may prove to be worthwhile bets, but traders should remain realistic and cash out profits if they are achieved . A lack of strong trading volume in the EUR/USD could display price action which doesn't seem to correlate to current behavioral sentiment. Full trading volume will not return until next week, in the meantime EUR/USD traders should be very cautious.EUR/USD Short-Term Outlook:
Current resistance : 1.04450
Current Support: 1.04290
High Target: 1.05300
Low Target: 1.03890
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