The EUR/USD pair had a very bullish session on Tuesday as more signs of hope entered the marketplace. However, hope typically gets squashed by someone in Europe, and we feel it is only a matter of time before that happens again. The 1.25 level is just above, and did keep prices lower. There is also a ton of resistance all the way up to 1.27, and as such we don’t really like buying the Euro at this point.
In fact, we see this pair is been at the top of the rising wedge roughly, and we could see a selloff from this point. With the Federal Reserve releasing the minutes from the last meeting, a lot of traders will be trying to figure out what the next move by the Americans central bank is going to be. If there is no sign of quantitative easing in that release, there is a good chance this pair sells off. As such, we are selling the first signs of weakness now.
Written by FX Empire