Looking at the EUR/USD pair, it is easy to tell that we had a very bullish session on Tuesday, and a significant one at that. After all, we closed towards the very top of the range, as we pierced several areas of resistance and aimed for the 1.12 level during the day. This of course is a very bullish sign, and as I have been saying that the 1.10 level is essentially “the frontlines” of the battlefield, I believe that the market has made it obvious as to what it wants to do next.
It doesn’t really matter at this point though, I swear that the Euro will continue to be volatile no matter what happens. After all, we have a lot of concerns coming out of Athens, although ultimately I think that will only end up being a lot of noise more than anything else. I do not see the Greeks wanting to leave the European Union, and are not doing anything to make that happen. So with that being said, I feel that it’s a relatively safe bet to assume that nothing like that is going to happen.
Breakout
Because of the strength of this candle, and the fact that we are closing towards the very top of that, I think that we are going to try to break out again. For me, the 1.15 level is the area we need to break above in order to change the complete trend, and I have to say it looks like we could be getting ready to try that. It doesn’t mean that it will happen tomorrow, or next week. But it does look like we are trying to build up enough pressure to go higher and break above that 1.15 level in order to change the trend and heads back to much more elevated areas. After all, the Euro has been mercilessly sold off for some time now, and at this point time you have to wonder who’s left to sell the currency for any real length of time? As long as we are above the 1.10 level, I feel that we are going to try to reach back towards the 1.15 handle.
