EUR/USD: '' Scalping '' trader's absolute joy

For the 6th day in a row the scenario remains the same with the pair locked in an extremely limited range of fluctuation either side of the 1,06 level.

The single European currency, even though it received some pressure yesterday and found itself retreating to the levels of 1,0570, it did not differentiate the last behavior and very soon reacted  again above 1,06 level.

The behavior of the FX market on the EUR/USD pair over the last few days has provided an excellent environment for trading in a very tight range which is the extreme joy of range trading  ''scalping'' traders with an short time targets.

As we have already mentioned in the previous days the pair remains locked at the current levels and is having difficulty finding any direction as the US currency seems to gather some advantages to go on the counterattack and absorb a significant part of the last pressures but at the same time the latest hawkish rhetoric from the European Central Bank appears to be creating significant support for the euro.

Yesterday's pressures on the international stock markets which i expected and already noticed 2 days ago strengthened the dollar again as it received the benefits as a safe haven currency.

The announcement on the growth path of the US economy positively surprised the markets and now leaves open the possibility that Fed will return to more aggressive rhetoric as its great concern about a recession in the US economy seems to be limited.

On today's agenda stands out the announcement of the index for personal consumption expenditures in the United States as well as the durable goods orders which the central bank monitors with extreme interest as they significantly affect the inflation indicators  and sometimes determines the Fed's decisions. 

As we have entered the last day of trading before the Christmas holidays the market remains confused struggling to find direction and the most likely scenario is that today will have a similar trading behavior as the last few days.

A possibly surprise in the announcements from the US economy later in the day combined with the very shallow market May be a decisive factor so that we see something different.

Once again yesterday's behavior of the pair confirmed the latest strategy to buy the US currency at every peak.

I see no significant reason for this strategy to change at present.