The EUR/USD pair did very little during the course of the day on Thursday, as we continue to meander just above the 1.29 handle. I believe that this market will continue to struggle overall, and as you can see on the chart I have put to resistance lines up on it. The 1.30 level for me is a very obvious resistance barrier, just as the 1.3250 handle is. In fact, it is not until we get above the 1.3250 handle that I consider buying this pair. Between now and then, I think that anytime this pair rises, you would have to assume that it is about to offer a nice selling opportunity.
The central banks are completely opposed to each other as far as potential interest-rate moves, and as a result I believe that the Federal Reserve will continue to make it so that the US dollar is stronger than the European currencies in general. We are seeing money flow how of Europe in general, and head to the United States. I believe this is a theme that should continue, and therefore we should continue to see the EUR/USD pair fall.
Still haven’t hit my target.
I believe that we still haven’t had the market target, the 1.28 handle. That level is significant support on longer-term charts, and as a result until we get there I think that the market is probably still going to have the proclivity to start falling again. Ultimately, we will have to see what happens there binds it is not until we test that area that I feel that the market will have properly checked the area for support.
If we did somehow get above the 1.3250 handle, I think at that point time we would probably head to the 1.34 level, and then possibly the 1.36 handle. However, I’m not anticipating that happening anytime soon, and as a result I remain very bearish in a market that has far too many things working against it at this point in time to change my mind.
