The EUR/USD pair has rallied rather significantly during the trading session on Wednesday, but it’s very likely that we need to see some type a pullback to offer the right amount of value for people to put money to work. The market seems to be looking at the 1.24 level as resistance, and I think at best probably psychological. I think that this pullback will find plenty of support near the 1.23 level, so I think it’s likely that we will start buying in that region again.
No market moves forever in one direction, and I think that’s what you’re seeing here. You are seen a market that is starting to pick up steam, and now that we have broken above resistance, it’s likely that we will see plenty of noise, but I think if you wait for value you should be rewarded. Alternately, if we were to break down below the 1.22 handle, then we probably must pull back a little bit further, perhaps down to the 1.20 level underneath. Ultimately, I believe that this is a “buy the dips” type of market, and therefore will continue to trade it to the upside. It’s not until the overall attitude of the US dollar changes I think this pair fall. Longer-term, I fully anticipate that the pair is going to break above the 1.25 handle based upon by analysis of weekly and monthly charge.
Written by FX Empire