EUR/USD trades volatile range in mixed market sentiment.
EUR/USD traded volatile ranges this week. The market overall lacked direction due to mixed news. Volatility was triggered last weekend due to concerns about the potential outbreak of a second wave of COVID-19. The majority of states in the US saw escalated new cases of infections and hospitalisations.
Market data, nevertheless, showed some improvement, thanks to the readiness of the Fed to provide support to markets. However, the warning by Fed chairman Powell about slow economic recovery, in his his mid-year address to the Congress, painted a gloomy picture.
Tuesday’s session provided no solid indications of a recovery. Despite the strong rally of most risk instruments, a shake during the midday session pushed prices down a bit lower. Thus, market sentiment was both negative and positive.
Wednesday’s session saw the volatile market slow down a bit after a few frantic sessions. The majority of USD currency pairs, including the EUR, showed less inclination to move higher.
Wednesday’s four-hour chart showed lower highs and higher lows trajectory. Traders struggled to assess if the risk rally can move to a fresh high or if the end has come to the risk rally that started in March. The volotility of the EUR/USD–pair leaves a mixed reaction in the market with uncertainty about where the trend is moving next.More Insights