The EUR/USD pair has drifted a little bit lower during the trading session on Friday, but at this point it looks as if we are simply trying to build up momentum. I believe that the market is trying to go higher but given enough time we should eventually continue the uptrend.
The EUR/USD pair went back and forth during the trading session on Friday, as we continue to try to build some type of base. I believe that the 1.2250 level should be supportive underneath, but it’s short-term support at best, so if we break down there it would be a huge surprise. Ultimately though, I do like buying this pair as the US dollar has been struggling. I think given enough time we could find plenty of reason to sell the US dollar, especially considering how the treasury markets have been actively. I believe that ultimately this pair does go higher, based upon the longer-term charts, and of course the fundamentals.
As we broke out of the bullish flag on the weekly chart, in measured for a move to the 1.32 handle, something that we obviously have achieved yet. That’s my longer-term target and I look at these pullbacks as an opportunity to pick up value. Currently, I believe that a break above the 1.2350 level is reason enough to go long again, and it should bring in fresh money. I don’t have any interest in shorting, although I do recognize that there is plenty of possibility of a short-term pullback. In general, this is essentially a “buy only” market, but I need momentum to the upside to start taking advantage of before I put any of my trading capital at risk. Longer-term charter consolidating, that might be what we’re going to see over the next 24 hours.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.