The EUR/USD pair initially fell during the session on Monday, but bounced enough to turn things around and go looking towards the 1.15 handle. That level is a massive barrier, and if we can break above that it’s likely that this pair will continue to go much higher. The 1.15 level has been the ceiling for consolidation over the last 2 ½ years, and I think a break above there would signal the next leg up in the longer-term market. Alternately, we could fail here, but I don’t see that happening quite yet as the weekly candles look relatively bullish. Because of this, I believe that we will eventually break out but I would like to see this pair clear the 1.15 level first before putting any money to work as these movements can be very volatile. I simply allow other traders to choose through the resistance before I put any of my trading capital to work.
Waiting on the break out
In this market, I don’t have any interest in putting money to work until we can close above the 1.15 level on the daily chart, barring some type of massively negative signal. I don’t have a massive negative signal currently, so I will be checking this chart at the end of the day on every session to see if we have broken out. Once we have, I suspect this market will go looking towards the 118 level longer term. It will course be very volatile, it always is as it is the domain of high-frequency traders. Stay tuned, I will keep you up-to-date here at FX Empire as to what I’m going in this market. Trying to guess which way were going to go is a great way to lose money, so I will be looking for confirmation no matter what happens next.
Written by FX Empire