The EUR/USD pair bounced during the Friday session, as the 1.22 level held as support. This bounce will more than likely signal an opportunity to sell this pair again, as the trend is so obviously bearish.
For trading strategy, we are looking at every handle as this pair rises in order to find a place to sell it from. For example, we feel that the 1.23 level, the 1.24 level, and most decidedly the 1.25 level should all offer resistance and we would sell a week candles from those levels right away.
With all the problems in Europe right now, it is just far too difficult to buy the currency. Headline risk will still continue to favor the US dollar, and as such we feel that this pair will continue much lower. It should be noted that the bearish flag on the daily chart once broken suggested that we were going to 1.15 or so. We still stand by that thought process, but of course it won’t happen overnight. With that being said, rallies are to be sold.
Written by FX Empire