The EUR/CHF pair took off to the upside during the Tuesday session, breaking the top of several candles from the past week or so. By doing so, there’s not much to doubt about the validity of the Euro being stronger, and I feel that the market will more than likely at the very least try to reach the top of the recent consolidation.
The recent consolidation between the 1.03 level on the bottom, and the 1.05 level on the top offers a clear and concise range from which to trade. I believe that the velocity of the candle and the fact that we are closing towards the very top of the range for the session suggests that the market should continue to go higher, as this was a significant breakout in favor of the Euro all around the world.
Pullbacks
I will look to short-term charts in order to take advantage of pullbacks that we should be buying opportunities in a market that is clearly defined. I don’t know whether or not we can actually break out to the upside for anything significant, because that would obviously mean that we need to get above the 1.05 handle. However, I do recognize that we should head towards the top of this range at the very least. Because of this, I feel that the market is bullish at the moment, but I will have to reevaluate everything once we close near to the 1.05 level.
The same thing can be said about the 1.03 level, as it has been so supportive. It is not until we break down below that level, significantly I may add, that I would be a seller of this market for anything more than playing resistance from the consolidation area. With that, I believe that this market will continue to offer plenty of short-term trading opportunities. Besides, the summer months don’t typically offer a lot in the way of fireworks, so at this point in time I think this will be a nice pair to trade back and forth over the next couple of months.
