The EUR/USD pair rallied on Tuesday, as we reach towards the 1.07 level. There is quite a bit of resistance all the way to the 1.0750 handle, so I’m not ready to start buying just yet. I believe some type of exhaustive candle in this general region could be yet another sell signal. Ultimately, I believe the longer-term outlook for the US dollars much stronger than the Euro, but we are obviously seeing a bit of a “knockout effect” from the search higher in the pound. We are still in a downtrend, so until we break above the 1.0750 level on a daily close at the very least, I remain negative.
Written by FX Empire