The EUR/USD pair rallied a bit during the trading session on Thursday, but it looks as if it is rolling over, making a “lower highs.” That of course is a scenario in which sellers will continue to jump into this market, and I think that we are getting a slow, gentle grind lower. That’s not to say that I am looking to short the market, but I do realize that short-term traders can probably go short this market. For myself, I am more of a swing trader, so I am looking for some type of flooring in this market to go long. I anticipate that the 1.21 level is a significant amount of support, extending down to the 1.20 level.
I recognize that the noise in this market may concern some people, but ultimately this is a market that has a longer-term uptrend that has been a major influence. I believe that eventually we will find reason to go long, and I think that eventually we will go looking towards the 1.25 level above. The US dollar continues to get beaten down, and I think that will be the longer-term story. However, if we were to break down below the 1.20 level, all bets are off, and I think that this pair falls apart. That’s a very unlikely scenario though, and therefore I’m looking for stability or at least a bounce to a fresh, new high on the hourly chart to get long. Expect noisy trading conditions, and be patient, but eventually the buyers should take over.
Written by FX Empire