The EUR/USD pair rose slightly during the Monday session as the volume simply wasn’t there. The Labor Day holiday in the United States Volumes to a minimum, and as such the day could almost be written off. While the candle was positive, it still been break the top of the range for Friday.
The reason this is significant is that the top of the range for Friday started to really approach the massively resistive 1.27 level. Until that level gets taken out to the upside, we aren’t comfortable going long of the Euro as there are far too many reasons why it could fall. As far as buying the Euro is concerned, we need to see 1.27 taken out on a daily close to consider it at this point in time. Until then, we are very flat of this market and looking for weak candles from which to sell. If we can get below the 1.24 level, we think this pair could fall the way back down to 1.20 before running into massive support again.
Written by FX Empire