The EUR/USD pair went back and forth during the day on Monday, essentially settling nothing. By doing so, it only adds to my interest in selling this pair as I believe that the upward momentum is running out of space. After all, I think that the 1.10 level continues to be massively resistive, and the more choppiness and struggling that I see between here and there, the more I become convinced that it’s only a matter of time before the sellers get involved. After all, the European Union continues to struggle in general, and I think it’s only a matter of time before we have a return to the US dollar.
Another thing that is, it attention is that the US Dollar Index has a massive amount of support at the 96 handle. With this, I believe that the market is going to drift a little bit lower to find that level and more buying pressure. That should coincide with a move to slightly higher levels in this pair, as the two markets tend to be polar opposites of each other.
Short-term moves
I believe that if you are going to start buying this pair, you can only do so with short-term moves in mind. However, if we sell somewhere just above, it’s much easier to hang on for a longer-term move as we should then head back to the 1.06 handle given enough time. Because of the longer-term trend anyway, so for my money it’s the safer trade to take. I believe that it is not until we get well above the 1.12 level at the very least that you can consider buying the Euro for any real length of time. Quite frankly, I am much more comfortable buying the Euro above the 1.15 handle, something that we are not going to see anytime soon. Because of this, I feel that if you can be patient, it’s only a matter time before you get a nice selling opportunity. I personally will be waiting.
