The EUR/USD pair fell slightly during the course of the session on Friday, but bounced enough to form a somewhat supportive candle. With that being the case, it looks as if the 1.1350 level is offering enough support to turn this market back around. A break above the top of the candle for the Friday session, I am a buyer as I believe this market will then crashed towards the 1.15 handle. This is an area that I’ve been paying attention to for some time now, because quite frankly I feel that the trend changes above there. This was shown recently by the fact that although we reached above there, there was a massive amount of resistance as we turn right back around. Finally breaking above there would of course be a huge deal.
Federal Reserve
The Federal Reserve of course continues to be one of the biggest problems in this market, because quite frankly nobody has any idea what they are going to do, but people are starting to question whether or not they can raise interest rates anytime soon. On top of that, this week will feature a statement by the European Central Bank after an interest rate announcement.
Ultimately, if we can break above the 1.15 level I feel that every time this market pulls back it will be a buying opportunity. There is an uptrend line below that should also continue to be massively influential, and it looks as if the US dollar is trying to fall apart in the US Dollar Index. If you break down below the 93 level in the marketplace, it makes sense that the EUR/USD pair will shoot straight through the air. After all, that is essentially a trend change in the US Dollar Index, and of course this pair continues to be highly influential in that market as it represents almost 40% of the value. In the meantime, expect a lot of volatility with an upward bias.
