The EUR/USD pair fell during the session on Friday, but what's important to me is the fact that the 1.30 level held as support. In fact, this is the second hammer in a row, which is a very strong buy signal as far as I can tell. That being the case, if we can manage to break the top of the Friday session, I will be buying this market and aiming for roughly 1.33, as there is a downtrend line from the weekly chart just above there.
I don't necessarily think this market is going to take off to the upside for any length of time, just that bullishness is probably going to be the case for the next couple of sessions. Quite frankly, when you look at the overall action that we have seen in this marketplace over the last two years, it's hard to hang onto anything for any real length of time. On top of that, anyone that reads these articles knows that I don't like the Euro in general, and believe that it's a manipulated currency at best.
Short-term trade only
This is all short-term trading to me. I have to admit though that I don't trade this pair as much as I once did. There is no definable trend most of the time, and even when there is it is so choppy one never really know what move is coming next. This is based upon all of the rumors and headlines out there that move this pair. Also, I would have to talk about the fact that high-frequency traders have descended upon the Forex markets, and this market is one of their favorite pairs. Remember, they need rebates and low spreads in order to operate in their microsecond environment.
That being said, there is also a sell signal on this chart as well. If you see the markets break down below the 1.30 handle, and more importantly close below there on the daily chart, the next move will more than likely be down to the 1.28 handle, where there is significant support again.