The EUR/USD pair shot straight up during the Tuesday session, as the 1.3150 level has been confirmed as a floor. The candle is very bullish, and we did close towards the very highs for the day, always a bullish sign. We believe that the Euro could reach the 1.34 level in the near-term, but it will be choppy going higher as there is quite a bit of noise above.
As far as selling is concerned, even though we had been very bearish of the Euro over the course of the last several months, it has become apparent that it simply cannot be done at this point. With this being said, we believe that a lot of what’s driving this is the Federal Reserve and its promise to continue to expand its balance sheet. Until the European Central Bank steps in and starts talking about printing Euros again, we suspect this market will remain bullish.
Written by FX Empire