The EUR/USD pair initially tried to break higher during the day on Thursday but ran into far too much trouble to hang onto the gains. With that, the market looks as if it is going to continue to struggle to get above its resistance barrier which I see all the way from 1.14 to the 1.15 handle if we take a significant amount of pressure to break down. In the meantime I believe that you cannot sell this market. True, we very well could drop back down to the 1.12 level but at the end of the day I believe that there is far too much support below to be bothered with doing so.
The shape of the candlestick of course is bearish, but I just cannot bring myself to sell a market that is gradually making higher laws. I also believe that if we can get above the 1.15 level, we will have changed the trend overall and the longer-term buyers will come back into the marketplace.
Longer-term buyer, but cautious in the meantime
I am a longer-term buyer of the Euro in general, as I believe that the US dollar is starting to look like it may have topped out in general. The US Dollar Index looks like it is starting to soften up in general, and as a result the pair will more than likely breakout eventually. However, once we get above the 1.15 level it is very likely that it will be very explosive.
I believe that it is only a matter time before that happens, so all I want to do is buy pullbacks as they appear. I think that the supportive candle below, especially closer to the 1.12 level will be reason to start buying as the market continues to grind its way higher. However, you have to keep in mind that the key word here is “grind.” I do not think is going to be an easy trade to hold onto to the 1.15 level, but once we get above there I plan on adding again and again.
