The EUR/USD pair exploded to the upside after a less than stellar jobs number coming out of the United States. The Friday session was very bullish, and it now looks as if we are going to continue to go higher over the longer term. When you look at the longer-term charts, there is a significant amount of resistance at the 1.15 level as it was the top of the three-year consolidation that we have been stuck trading him for some time. The market continues to be very volatile as the currency markets have been very scatterbrained to say the least, but I think now that the 1.12 level will continue to be the “floor” in the market, as the impulsive an explosive hourly candle suggests that the buyers have jumped in with both feet. I believe that pullbacks offer buying opportunities, just as a break to a fresh, new high would be.
Buying on the dips
I believe in buying on the dips, as we clearly have seen a shift in attitude. I believe that markets continue to react to various headlines going back and forth, but given enough time I think that the markets will find the 1.15 level above far too tempting for traders to ignore, and therefore I think that we will eventually find her way to that level. I believe that the pair continues to see several levels that offer both support and resistance.
Given enough time, we will have to make an impulsive move outside of the consolidation area, but there is nothing on this chart quite yet that suggests that we will be able to break out anytime soon. Ultimately, the market looks to favor the upside, but the real fight is above, and should be rather epic.
Written by FX Empire