The EUR/USD pair tried to rally during the course of the day on Monday, but failed just above the 1.10 level yet again. With that, I feel that this market should continue to fall, probably heading towards the most recent low at the 1.0750 level. Ultimately, if we can break down below there I feel that the market goes down to the 1.05 handle. Below there, parity is calling. I really don’t have any interest in buying this pair, so this is essentially a “sell only” type of situation as far as I can see. The European Union continues to offer quite a few issues for traders to be concerned about, and although the Friday jobs report out of the United States was very soft, the reality is that it is one bad announcement, as opposed to the plethora of major issues in the European Union.
I keep selling rallies
The way I trade this pair is simple: I just simply sell rallies as they appear. Resistive candles are simple imitations to pick up value in the US dollar, and I do believe that ultimately we will try to get down to the parity level. It is not until we get above the 1.15 level that I could even consider buying, which I don’t see happening anytime soon. With this, this is essentially a “sell only” type of marketplace, and keeps me from even looking for the buying opportunities in general. I know that there will be moments from time to time that traders out there feel that it’s time to start piling into the Euro, but really there’s nothing that makes me want to risk any serious trading money doing this.
If we do get above the 1.15 handle, then I believe that the market should head to the 1.20 level and possibly even change the trend completely. Once that happens, that of course is a very bullish sign and we change my entire outlook. Until then though, it’s selling only for me.
