EUR/USD fell during the Thursday session as the rout of the Euro continued. The 1.2200 level has offered a bit of support, and as such we did see a bit of a hammer formed for the Thursday session. This more than likely will lead to a bounce in this market, but we feel that this is going to simply be a bit of a relief rally, and not anything substantial. After all, the market was 500 pips above current levels just two weeks ago.
Looking forward, we suspect that the 1.2400 level will be the beginning of serious resistance. With this in mind, we are selling anything in that area or above that look weak. Of course, if we break the bottom of the candle for the Thursday session, we suspect that this market will continue much lower. After all, we still think that this pair goes to 1.15 before the move it’s all said and done.
Written by FX Empire