The EUR USD pair went back and forth on Tuesday, essentially tracing the range from the Monday candle. The Monday candle was a hammer though, and as a result it looks like the market is ready to find buyers in the general vicinity of the 1.3650 level, which could send it higher. That being the case, I feel that this market will more than likely continue to go higher, but also recognize that there is quite a bit of noise between here and the 1.38 handle, which I believe is the target of the market.
I can see that the 1.37 level offers resistance, as well as the 1.3750 level. That being the case, I feel that any move higher is going to be a bit choppy to say the least, but I do think that there is a certain amount of buying pressure that is going to continue to find itself being placed into this market.
Patience will be needed.
I believe that the Euro will continue to appreciate against the Dollar, but patience is going to be needed. After all, this resistance areas will continue to push and pull the market back, so I feel that short-term traders will more than likely be what drives this market higher. Every time this market pulls back in the short-term charts and show support, I’m going to be interested in buying it. Whether or not we can get above the 1.38 level might be a different question, and even if we do get above it, I think that there is going to be a significant amount of resistance waiting for the buyers at that point.
That being the case, I believe that we’re going to continue to consolidate between the 1.3550 level on the bottom, and the 1.38 level at the top. This is probably what the markets going to do have the next several weeks, but I still think there is a slightly bullish bias in this market. In fact, I do not believe that the market can break down from here and less of course we start getting very strong jobs numbers out of America, something of course we did not get last week.
