The EUR/USD currency pair initially fell on Monday, but found enough support near the 1.1730 level underneath to turn around and reach towards the 1.18 level above. A break above there should send this market looking towards the 1.1850 level next. Longer-term, the market breaking out of the recent consolidation area looks likely to send this market reaching towards the 1.25 level above. I think the pullbacks continue to offer buying opportunities, but I don’t think that the market will be easy to traverse. I think that using small positions will probably be the best way to go forward, and think of the EUR/USD pair as a potential investment, not necessarily a trading opportunity. With the high leverage that’s allowed in the Forex markets, it’s likely that the pullbacks could be detrimental to your account. Be patient, and be small. Given enough time, we should go much higher from here.
Written by FX Empire