To learn more click here
The EUR/USD pair was once again the epicenter of the Forex markets this previous week, as the European Union had its two-day meeting on Thursday and Friday. The women area announces coming out late Thursday gave the "risk on" mode a boost in this and other risk sensitive markets.
The weekly candle is a hammer, and it does seem to be based right around the 1.25 level. However, the Europeans have a long history of disappointing once the details come out and as such we are overly excited or ready to buy the euro quite yet. Europe still has a very sluggish Outlook going forward and the ECB is expected to start cutting rates soon. Because of this, we think that this market is setting up for an opportunity sell from higher levels. However, we have not seen that candle that we want to sell yet. With this being said, for the longer-term trader we are going to need to wait for the right signal on the weekly timeframe.