The EUR/USD pair went back and forth during the day on Thursday, as we have reached a recent high, causing the market to pull back ever so slightly. I think that given enough time, we will break out, but in the meantime, I’m looking at short-term pullbacks as potential buying opportunities. The market sees a significant amount of resistance at the 1.20 level above, and most certainly the 1.21 level as it was the recent high. I don’t have any interest in shorting this market, because when I look at the weekly charts it looks as if we are forming a bit of a bullish flag. That of course signifies that we’re going to go higher, and I believe that some time over the next year or 2 we will go to the 1.32 handle. However, a not going to do that today, so it’s likely that we will bounce around with an upward proclivity.
The British pound fell initially during the trading session on Thursday, but found enough support at the 1.3333 handle to bounce again, showing that we still have an upward momentum underlying the market. Looks likely that the market forming a hammer suggests that we are going to go higher, perhaps reaching towards the 1.35 level above. That is a level that I think is going to cause a bit of resistance, but eventually we will break out above there. The uptrend line is very much intact, so I think that the uptrend is intact overall. Eventually, I suspect that the market is going to go looking towards the 1.3650 level, which is a major barrier to overcome. Once we do, the British pound becomes “buy-and-hold.”