EUR/USD Forecast July 9, 2013, Technical Analysis

The EUR/USD pair bounced off of the 1.28 handle during the session on Monday, an area that we had previously mentioned as being rather supportive. It is because of this that we think that the market will continue higher, and because of that we are now thinking of taking on short term positions to the upside.

A break of the top of the candle for the session on Monday is a buy signal as far as we’re concerned, but we do not expect a move above the 1.30 level as it is far too resistive. That being the case, we think that a short-term trader can certainly take advantage of the sudden bullishness in the Euro, but we do think that the downtrend will continue overall. With that being the case, we feel that this market is still a negative one overall, but a few days a positive action is probably warranted at this point.

If we did managed to break below the lows from the Friday session however, we would consider this market completely busted, and probably heading down towards the 1.25 handle. After all, the Euro has been be a bond for a while now, and it appears that it is going to continue this way overall. We think eventually the bottom will get blown out, but that may not happen for a while as the Euro tends to be a very resilient currency overall.

The only way we become longer-term buyers is if we can get above the 1.32 handle, which is something that we do not see happening anytime soon. In fact, the smartest trade is probably to simply sell this market somewhere closer to the 1.30 handle, and look for short-term losses and the value of this market overall. The breaking of the downside is something that we fully expect to see, but it might be a little while, so you must be able to keep both sides of the trade open if at all possible. Expect headlines to continue to rock this currency pair, as there are still plenty of possible negative things coming out of Europe.


EUR/USD Forecast July 9, 2013, Technical Analysis

Written by FX Empire