The EUR/USD pair slowly drifted a bit lower during the day on Tuesday, but we are above the uptrend line on the hourly chart that has been supportive for several sessions. The 1.18 level underneath should be supportive as well, so I think we will probably see buyers jump back into the market. If we break down below the uptrend line, then I think the pullback could be a bit more significant. Quite frankly, we are probably in need of a pullback, as the EUR has been so bullish over the longer term. Ultimately, I believe that short-term pullbacks could be buying opportunities, but I also recognize that we need to find buyers underneath. Because of this, I’m looking for daily candles to tell me when the buyers have returned.
The market has been over exuberant lately, but I certainly wouldn’t be selling this market as the market has obviously made up its mind as to which direction we should be going longer term. With this, I think that any pullback at this point should offer a nice buying opportunity to take advantage of what could be a very strong multi-month if not multi-year trend. Because of this, I believe that we will get a nice opportunity at lower levels, and therefore by the EUR at sale prices.
Written by FX Empire