The EUR/USD pair was slightly negative during the trading session on Friday, reaching down towards the 1.1733 level. I believe that we are consolidating between the 1.17 level underneath, and the 1.18 level above. I think that eventually we will break above the 1.18 level, sending this market to the much higher, perhaps finally breaking towards the 1.21. In general, I believe that this is a market that should be bullish, especially considering that the weekly chart looks to be forming a massive bullish candle. I think pullbacks offer value, and given enough time we can eventually find buyers to jump in. We have seen a significant amount of bullish pressure over the year, and I think that the market should continue to be one that suffers from volatility.
It is because of that I am waiting for a move above the 1.18 level to start putting money to work. I would be interested at the 1.17 level if we get some type of significant bounce, so at this point I have no interest in shorting. I think that the 1.18 level being broken to the upside would show a significant amount of momentum building up in a market that I think will be the story of most of the next year. A break above the 1.21 handle is a “buy-and-hold” trade, which I think we are currently trying to build our way up to. Be patient, and look for buying opportunities as selling doesn’t seem to be much of a thought for larger players. The pullback that we have seen over the last several weeks hasn’t been impressive when you look at the longer-term charts.
Written by FX Empire