The EUR/USD pair rallied during the day on Wednesday, reaching towards the 1.1850 level. However, we pulled back and found enough support underneath to continue higher. The market has been very strong, and I think it will continue to be so. The US dollar continues to be plagued by the idea of a less than hawkish Federal Reserve, and that being the case it’s likely that dips will continue to offer buying opportunities. However, I think by just about every measure that you can throw at this chart, we are a bit overbought. I would love to buy dips, if they were stronger.
I believe that buying dips is the best way, but we don’t have enough value in this chart to be picked up yet. I think that given enough time we should see plenty of selling pressure, as people will be looking to take profits after this significant rally. I don’t have any interest in shorting whatsoever, and less of course the jobs number totally throws the market into disarray. I don’t think that’s going to happen, and I believe that every time we pull back is an opportunity to get long yet again.
Written by FX Empire