The EUR/USD pair fell during the Monday session, but I still believe that there is more than enough support below to keep this market afloat. However, we still have quite a bit of drama coming out of Athens, and as long as that’s the case there will be a few jittery nerves here and there. If we break out above here, I still need to see this market clear the 1.15 level in order to start buying for any real length of time. In the meantime, I am a buyer of short-term pullbacks for short-term trades only.
I don’t have any interest in selling Euro, because quite frankly I cannot even begin to count the amount of times that the Euro has burnt me in the past by tricking me into selling it. Every time the Euro looks like its toast, it suddenly finds a new life line. I think that’s with going to happen this time as far as Greece is concerned, as we kick the can down the road and start buying Euros again collectively as a market.
Choppiness ahead
Choppiness should be ahead for this market until we get some type of significant move out of the Greek debt talks, and of course the move above the aforementioned 1.15 handle. I don’t really have a scenario in which I’m comfortable selling this market at the moment, because as you can see we are making “higher lows”, which of course is a sign of building strength underneath.
However, once we do get above the 1.15 level, I feel that the market will have changed trends significantly, and I would of course be a buyer adding to the position every time we dipped. I think that it will be a longer-term “buy-and-hold” type situation as well, and that the trend will of course be positive at that point in time. At this point time though, as I said before, I don’t really have a scenario in which I start selling.
