Looking at this market, the first thing that I notice is that the 1.2950 level has been resistance several times. However, the lows are starting to get higher, and that suggests that we are going to go looking towards some type of higher level, and if we can break above the 1.2950 level, I think we will go looking towards 1.30, and then possibly even higher than that. Obviously, oil has its influence on this market, as it typically does. Oil has been bullish as of late, but it is starting to get a bit exhausted.
The alternate scenario is that if we break down from this general vicinity, we could test the 1.28 level again. Below there, the market is probably going to open to 1.27, and then eventually the 1.25 level. The market participants will continue to deal with a lot of noise, but I think that the market should continue to find plenty of opportunities for those who are more range bound traders. This would be more of the scalpers market, at least until we break above the 1.2950 handle. I think that the 1.30 level will course offer a certain amount of psychological resistance, but I also recognize that it has been sliced through several times, so I think that the effect will be noticeable, but certainly able to be overcome by either the buyers or sellers, regardless of which direction were traveling.
Written by FX Empire