The EUR/USD pair initially fell during the day on Friday, but as you can see bounced enough to go higher. Ultimately, we did find the 1.08 level to be rather resistive, so it’s difficult to imagine that this market is going to have a relatively easy time going higher. I believe that the 1.10 level above is still significantly resistive, as it has been recently. I believe that the market should continue to find sellers every time it rallies, and the candles that we have seen recently should dictate that we are going to struggle every time we go higher.
I cannot help but notice that the Euro looks very soft against most currencies, with the US dollar being no different. While the candle that formed for the Friday session isn’t necessarily a shooting star, but it is kind of close. It tells me the same thing, as the buyers simply cannot hang onto the gains for very long.
Selling rallies still
I still believe that it’s all about selling rallies as they appear, as the US dollar remains the strongest currency in the world. The 1.05 level below of course is massively supportive, so I think it’s only a matter of time before we have to test that area again. The market likes these areas, and as a result I think that it will find itself attracted to that level again. If we break below there, I think we then go to the parity level. That is my longer-term thought process that we will finally break down to the parity level given enough time.
I also believe that it’s not until we get above the 1.15 level that it’s even possible to start buying. At this point in time, essentially ignoring any by signals as I think they will be falls. Yes, you could have made money buying the Euro over the last couple of sessions, but quite frankly it’s not worth the volatility. Ultimately, I prefer to go with the longer-term trend.
