The EUR/USD pair fell slightly during the course of the day on Monday, but quite frankly we are still going sideways overall. The 1.13 level offered enough support to turn the market back around slightly, but I would not be surprised if we continue to go lower in the short-term. Having said that, I think there is more than enough support below to keep this market going higher over the longer term, and I believe that last week’s attempt to get over the 1.15 level is essentially a “shot across the bow” of the sellers.
Because of this, I feel that the market is simply pulling back in order to build up enough momentum to go higher for the longer term. Once we get above the 1.15 level, I feel that essentially the trend will be changing and we will start to see Euro dominance yet again. With that being the case, I am longer-term bullish of this pair.
Pullbacks should offer value
I believe going forward, every time this market pulls back it will be a buying opportunity. I think it offers value as the Euro has been so drastically oversold during the last couple of years. If the Federal Reserve is nowhere near raising interest rates as some people are starting to speculate, this pair needs to go much higher, and quickly. Again, I believe that the 1.15 level will eventually be when the floodgates open.
I have an uptrend line underneath, which is the bottom of an ascending triangle on the longer-term charts. I believe that this market will fill that pattern and eventually proving it to be true. I have no interest in selling this market right now, at least not until we break through that uptrend line, which is quite a distance from local trading. With that, I think that you simply have to wait for short-term bounces and supportive candles in order to take advantage of short-term moves to the upside that should return again and again.
