EURUSD Caught In Sideways Trend

EURUSD is currently caught in sideways trend and before it manages to break clearly in any direction, it seems to stay in range between 1.4300 and 1.3900 level. Once EURUSD breaks either level, it is expected to take some extended move in that direction. Basically what intra-day and short term traders will be doing is to trade EURUSD on touching top or the bottom of this sideways channel.

EURUSD is also caught in between short term and medium term moving averages and the moving averages are almost around the same levels, i.e., 1.4300 and 1.3900 and it also suggests the importance of these two levels and break above or below those levels will certainly trigger and extended move.

RSI is also just around 55 in daily charts and suggests that the move in both sides is very much possible and have equal chances. The intra-day traders might be targeting to sell EURUSD around 1.4290 level for a decent intra-day trade.

At the moment, as the market is trapped in sideways trend, the traders will look to trade EURUSD with decent stops and secondly they will not be aiming for very extended profits and the market is not clear in terms of long term trend and can be termed ass taking retracement or can be moving in a short term trend.

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