The EUR/USD pair did very little during the day on Thursday, but we did end up with a positive candle. While it wasn’t necessarily a major move, the reality is that with holiday liquidity becoming very thin, it was never going to be a massive day to begin with. Now that we have closed for the session, and of course have gotten past the Christmas holiday, we have to look at this chart as consolidation. After all, I have a yellow area that is highlighted that I believe will be very crucial for the future direction of the Euro.
You can see that the 1.10 level of course has been resistive recently, and that of course is also a large, round, psychologically significant number. However, I also have several other things that I’m paying attention to at the moment. While the 1.10 level is probably reason enough to think that resistance will appear, the reality is that we also have the 100 day exponential moving average at that area, which long-term traders tend to use quite often.
Ultimately, I Think That We Are Bouncing Around
Ultimately I think we are bouncing around at the moment, with the 1.08 level below has been support, while the 1.1050 level above has been resistive. On top of that, I believe that the 50% Fibonacci retracement level is of course something that longer-term traders are paying attention to, and that of course we have the 61.8% Fibonacci retracement level above here. That is at roughly 1.11, so I think it’s not until we get above the 1.11 level that it’s going to be easy to start buying. In the meantime, I think you will have to simply go back and forth in the previous consolidation area, meaning that short-term trading is about the only thing that you will be able to do over the next several sessions.
