The EUR/USD pair has rallied significantly during trading on Tuesday, going into the US session. However, we are reaching a significant amount of resistance just above, at the 1.1750 level. The level being broken to the upside would be very bullish and could send this market much higher. I think at that point we would gain another hundred points, sending this market towards the top of the longer-term consolidation between the 1.1850 level. In the short term though, I anticipate that we could probably pull back from here, perhaps staying within the longer-term symmetrical triangle that I have been talking about, which would make a lot of sense considering that we have so many major interest rate decisions and of course the jobs number on Friday this week. That puts a lot of uncertainty into the market, and therefore has a lot of people concerned and not willing to put a lot of money to work.
Because of this, I am selling this pair if we can stay below the 1.1750 level, but I’m only expecting a short-term move, something that is more of a reversion to the mean than anything else. I believe that ultimately, we might get some clarity, but it’s not going to be until the end of this week so I will approach this pair like that, as well as the rest of the Forex markets as we are about to see a lot of major news crossing the wires.