The EUR/USD pair had a wild day on Friday as the G8 summit loomed. As it has done recently, the pair started out the day falling, only to bounce once the Americans were left alone to their devices. The selling of the Dollar is almost like clockwork for New York, and Friday was no different in that sense.
However, the day saw a larger than usual bounce, and this was more than likely due to the fact that many traders wouldn’t want to go into the weekend short of the Euro as the G8 got underway. There could be major announcements that would boost the Euro, and as a result many felt no need to be overexposed at the close.
The 1.26 level has been may target for some time now, and we got very close to it. In fact, it was close enough for me to consider the move over for the short term. However, the trend is most decidedly bearish, and my attitude about the Euro hasn’t changed at all. I still don’t like this currency at all, and I also think it is only a matter of time before the current form of the Euro is history.
Bullish Outside Candle
The Friday candle formed a larger bullish outside candle, which of course is a strong buy signal on a break above the highs. Having said that, I still feel that this move has a way to go but we are about to get an overdue bounce. After all, the Euro is a place where hopium resides en masse, and those particular traders haven’t had a chance to buy it lately.
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I will be looking to sell this pair at higher levels, with special attention being paid to the 1.29 and 1.30 levels. The announcements over the weekend could move this pair, and a lack of any announcement could send it down before we test one of those areas. In this sense, I am going to have to be somewhat flexible as the situation could change radically based upon headlines coming out of the summit.