The EUR/USD pair exploded to the upside during the session on Wednesday, breaking above the 1.12 level finally. Now that we are clear this area, it looks as if the pullbacks could offer value going forward. The pair should see a bit of support at the 1.12 level underneath, and now that we have broken above what I perceive as a daily bullish flag, it looks as if we will continue to go higher. Ultimately, this is a market that should continue to see quite a bit of buying pressure going forward, but it may take some time to get to my longer-term target. When you measure the overall length of the bullish flag, it suggests that the market may go to the 113.50 level at the least. Because of this, I believe that the buyers get involved and probably continue to buy on the dips as the market is rather choppy, and therefore offers plenty of opportunities to go long.
The 1.12 floor
I believe that the 1.12 level should act as a floor. If it does not, that would be a very negative sign and I would be a big concerned. Ultimately, it looks as if the breakout is though, so I believe that the market will continue to see bullish pressure as although we know that the general attitude of the market is very skittish, it appears that the market has made up its mind when it comes to the Euro. We also recognize that there are several interest rate hikes ahead or the Federal Reserve, but the longer-term attitude of this pair is one of a consolidation, with the 1.15 level above being the top, and the 1.05 level be in the bottom. Because of this, I believe that longer-term traders are eyeing the 1.15 handle.
Written by FX Empire