The EUR/USD pair had a positive session on Monday as the bounce continued from the Friday session. The pair has been massively oversold in the last couple of weeks, so this bounce was bound to happen sooner or later. However, in the big scheme of things – very little has changed and this has us bearish on the whole.
The hammer shaped candle from the Monday session does suggest that the pair is ready to continue rising. On a break of the highs, this would be a short-term buy signal to about the 1.29 handle. Once the market hits the 1.29 and 1.30 levels, serious resistance will be had at that point, and we will be looking to sell weak candle in that neighborhood. A break of the lows is also a sell signal.
Written by FX Empire