The EUR/USD pair shot straight up during the session on Thursday as the Federal Reserve has expanded its monetary easing policy yet again. The pair closed at the top of the range for the session, and slammed into the 1.30 level. This was an area that we suggested that could be resistive, as it is the bottom of the descending triangle that sent this pair down to the lows earlier this year.
Because of this, we think although this pair is relatively bullish looking, there will be easier ways to find the Euro. In fact, we are much more interested in the EUR/JPY pair at the moment as there is much less resistance above the 101 handle. However, we see this pair as possibly breaking out as well, but it seems like it’s a little bit overextended. A nice pullback would be the way to go as far as buying this pair and we think the 1.28 handle would be an excellent place to consider it as the 200 day moving averages just right around that area.
Written by FX Empire