The EUR/USD pair went sideways during most of the session on Tuesday, testing the 1.18 level for support. As the Americans came on board, the jobs opening number broke above 6 million, and since a lot of money flowing into the US dollar. This is going to be another reason for the Federal Reserve to think about hiking rates, so I think that we will continue to see selling opportunities in this market. I believe that the 1.15 level underneath is massively supportive, and I think that the market is probably going to go looking for that. We have broken significantly harder to the downside as we lost more than 60 pips in the space of 45 minutes.
I believe that short-term rallies continue to offer selling opportunities at the first signs of exhaustion, and I think that we will probably continue to see buyers jump into the market at large, round, psychologically significant numbers. Ultimately, I think that given enough time it’s going to be a situation where we go looking towards the 1.15 handle where the real fight begins. I think that we should also take into account that there is a massive gap on the daily chart well below the 1.15 level that could be filled if momentum picks up. At the longer-term concern though, and then the meantime I think we are probably looking at significant areas of interest from time to time, but I believe that the market will continue to be one that favors the US dollar as the greenback has been oversold as of late. This pullback could be a buying opportunity later, but I would not step in front of this market, as it’s very dangerous to “catch a falling knife”, as they say.
Written by FX Empire