The EUR/USD pair rallied slightly during the day, but Friday wasn’t exactly explosive. Currently, looks as if the market is trying to form a bit of a base at the 1.17 level, as the last couple of sessions have formed hammers. I think the given enough time; the market will continue to go higher but there’s really no catalyst to move things currently. Because of this, being patient is what will be needed to profit off of the uptrend, and I think that we are simply looking in consolidation to digest previous gains. Eventually, I anticipate that this market will go looking for the 1.19 handle, which is the beginning of a rather significant resistance barrier to the 1.20 level. The US dollar is being sold off in general, and I think that this pair will be a great way to play against it. Having said that, the European Central Bank has been sending somewhat mixed signals lately, as far as what the quantitative easing plans are.
Written by FX Empire