The EUR/USD pair went sideways during the day on Tuesday, as we have been consolidating for some time. However, the market did rally during the day but then turned around at the 1.17 handle above. This is a market that continues to see a lot of choppiness, but certainly has an upward attitude longer term. I believe that the market is probably going to go looking towards the 1.1850 level above, which is the resistive level that I think is the next target. Because of this, and the 24-hour exponential moving average offering such nice dynamic support, I am a buyer of this market in general, although I understand that there is a lot of noise surrounding it, and of course the FOMC coming today.
During the session, consumer confidence came out in the United States much stronger than anticipated, so it did push this market lower, but ultimately, I believe that we are going to continue the uptrend, as the marketplace may have overreacted a bit. Given enough time, I not only think that we will reach the highs again, but I think we will go beyond that. I have no interest in shorting, this is a market that has broken out above a 2.5-year consolidation area recently, which of course doesn’t happen very often. With this in mind, I’m a buyer of dips, I’m a buyer of breakouts, and I am holding a core position to the upside in this market. Selling isn’t a thought until we break down below the 1.15 level, something that doesn’t look very likely to happen anytime soon, but if it did it would change everything in this pair as it would show complete breakdown in confidence when it comes to the Euro.
Written by FX Empire