The EUR/USD pair fell again on Friday, after initially trying to rally and bounce off of the 1.34 level. This market looks relatively weak, but it should be stated that there are a lot of supportive clusters just below. The Friday session produced a shooting star, and this of course normally means more weakness going forward. With all this being said, we believe that the downside is somewhat limited and think that perhaps the 1.32 handle will be strong enough to catch this falling market. Remember, this move was predicated upon the ECB complaining about the Euro being too strong. Even with that being the case, it’s just a knee-jerk reaction at this point.
Written by FX Empire