The EUR/USD pair rose during the session on Thursday, bouncing off of the 1.2750 level. This was predicated mainly upon the idea that the Cypriot banks opened without too much in the way of violence or a run on the banks. The markets have been concerned about this, in this bit of a “relief rally”, more than likely signals that the crisis in Cyprus is going to take a backseat for the short term. However, there is going to be a certain amount of this trust with the European Union going forward as the once sacred area of depositors being saved from having to bailout the banks has now been violated. With that being said, we like selling rallies in this pair of the show signs of resistance, and believe that the 1.30 level would be an excellent place to see a weak candle.
Written by FX Empire