The EUR/USD pair fell during the Wednesday trading session in order to test the 200 day simple moving average again. This also reaffirmed the supportive nature of the 1.27 to 1.28 support zone. With the hammer that formed for the trading session, it looks more and more obvious that the Euro is looking to head back into the previous consolidation area between 1.28 and 1.3150 or sell. This is especially interesting as there are still failures to get a consensus on what to do about giving Greeks their money. With all this being said, the fact that the Euro continues to be buoyant is indeed a telling sign in and of itself.
On a break above the highs from the Wednesday session, we believe this market is suddenly a buy. We don’t necessarily think that some massive move waiting to happen, but we could see the Euro gain strength in the near-term.
Written by FX Empire