The EUR/USD pair fell rather hard during the session on Friday, as the Euro continues to suffer at the hands of the Dollar. With the Federal Reserve looking like they are going to pull away from quantitative easing, this essentially becomes a battle between two central banks on opposite ends of the spectrum. While the Federal Reserve essentially tightening by not listening, the ECB may be in a position where they have to expand monetary policy due to the week performance of the European economy right now. With that being the case, we are sitting on top of a fairly significant cluster so we feel that we could get a bounce which would be an excellent selling opportunity. It isn’t until we clear the 1.34 handle that we would be convinced of another leg up in the Euro.
Written by FX Empire