The EURUSD pair rose during the session on Wednesday, using the 1.38 level as a springboard. However, we pulled back enough to form a shooting star, and it appears that the market is going to continue to meander in this general sanity.

It does make sense, the 1.38 level is a large, round, psychologically significant number.

This area should continue to attract traders from both sides of the equation, and as a result we feel that the market will continue to be very choppy and difficult to trade.

Going forward though, we would not be surprised to see a move to the gap that formed this weekend.

Editor’s Note: Equity investors/traders can use the Currency Shares Euro Trust (FXE, quote) ETF to take positions in the euro without a FOREX account.  The ETF looks to track the price of the euro, minus ETF fee. The fund seeks to reflect the price of the euro with the shares representing a cost-effective investment relative to investing in the FOREX market.

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