EUR/USD rose during the Wednesday session as the gap has now been filled from the weekend. The Euro continues to have major issues, but there were comments from various higher ups in the ECB over the last few days that suggest the central bank may be softening its policy on giving the ESM banking status, which of course would give the ECB the ability to buy at that. In other words, monetize everything.
However, the gap has stopped the bullish traders at this moment in time, and we are coming up against a relatively strong consolidative area that we feel should continue to pressure the Euro to the downside. We are looking for weakness in this rally to sell. A week daily candle would be ideal; however we are more than willing to accept one on the four-hour chart from which to sell.
Written by FX Empire