The EUR/USD pair rose during the session on Monday, bouncing off the 1.28 handle yet again. This is an area that has served as a significant strength time and time again, and the support held true again on the Monday session. However, having said that I feel that this market is due for a selloff after we get this bounce. This bounce is a bit of a "dead cat bounce" as far as I'm concerned, and I find the idea of this market going above the 1.30 level very unlikely at this point in time.
The US dollar remains the favored currency of the Forex world right now, and as a result I cannot see selling it against much. If you are a short-term trader though, there is the possibility that we could rise to the 1.30 level on a break of the daily high from Monday. If you have the ability to watch the trade, that is a possibility, but I would not suggest that trade for anyone other than the more experienced trader.
1.30 should be a brick wall
The 1.30 level really should be rather resistive. If that's the case, I would fully expect to see this market selloff from that area, and as a result we could see a nice selling opportunity because of it. I don't necessarily think that this market is going to melt down, but I would not be surprised at all to see the 1.25 level sometime later this year. After all, the Federal Reserve is continuing to look more and tighter at this point in time, and tapering is almost certainly going to happen sooner or later.
Going forward, I am not a big fan of the Euro and believe that unless we managed to break above the 1.32 level, there's really nothing to talk about as far as the bullish side. This market looks to be extraordinarily choppy overall though, so only those with the wherewithal to trade such a market should be involved at this point.