The EUR/USD has been displaying a solid bullish trend mid-term, and the price action within the forex pair the past two days demonstrates it can actually produce volatility. After climbing to highs near 19.60000 the Euro did reverse lower as selling developed. Trading in the EUR/USD has also been fast this morning, so traders need to be alert.
Speculators may be tempted to pursue a buying position of the EUR/USD within its current price vicinity with the belief that it will technically challenge higher resistance levels again near term. It is not an accident that the EUR/USD found plenty of bullish and fast trading when risk appetite also challenging new highs on global equity indices a couple of days ago. One of the intriguing aspects of the Euro, when it is traded against the US Dollar, is the noticeable trends the forex pair produces.
Patient traders who are willing to hold positions overnight are able to take advantage of mid-term trends within the EUR/USD. Short term speculators however tend to look for quicker results and seek low watermarks or higher levels to enter orders using technical insights and momentum they believe will be generated. Interestingly, the current level of the EUR/USD appears to be within levels which a short term speculator may believe upside momentum will develop.
After testing highs two days ago, the EUR/USD has certainly seen some short term bearish price action. However, if the forex pair can sustain its current levels and support near the 18.10000 can hold, the opportunity to seek a buying position looks to be a logical decision. The EUR/USD has been dynamic, but its trend continues to look bullish.
A buying range of 18.10000 to 18.20000 may prove to be adequate entry levels for speculators pursing buying opportunities. If support is challenged near the 18.00000 juncture traders may get nervous, so a stop loss near the 17.9000 mark could protect them against strong downward moves. The EUR/USD has enjoyed a strong mid-term bullish trend, it has also shown the ability to incrementally increase its support ratios which allows buying momentum to still be pursued.
EUR/USD Short Term Outlook:
Current Resistance: 1.18950
Current Support: 1.18100
High Target: 1.19250
Low Target: 1.17900
