The EUR/USD pair rallied a bit during the trading session on Monday, but it looks likely that we are going to struggle a bit to get to the upside. If we can break above the 1.1825 level, it’s likely that the market should continue to reach towards the 1.1870 level. Longer-term, I do believe that the pair goes looking to the upside, and most of this is due to the idea of the hammer that formed on the weekly chart that we are trying to break above. Given enough time, I expect that this market goes higher, this will be especially true if Wednesday we get a statement after the Federal Reserve interest rate decision that is less bullish than anticipated. That could send money flooding into the pair to the upside. In general, I believe that the market will go looking towards the 1.20 level, and then eventually the 1.21 handle.
I believe that the 1.17 level underneath continues to be very important, and essentially massive support that the buyers need to hold. If we were to break down below there, then I think the market roles over significantly and down to the 1.15 handle after that. In general, I think that the ECB cutting back on quantitative easing in 2018 has been a major driver of this pair to the upside, and a break above the previously mentioned 1.21 handle has this market looking for a “buy-and-hold” attitude. The General volatility will probably continue, but in the end, I think that the buyers have much more momentum.
Written by FX Empire