Euro - The Buyers Have It
I love it when a plan comes together. EURUSD launched itself over 100 PIPs today as buyers came back in with a vengeance. At day’s end though they gave back a little bit of ground but nothing unusual considering it’s a Friday with traders possibly unwinding some of their exposure ahead of the weekend.
I definitely didn’t expect the strength of the move today but in the end it doesn’t matter. When looking at charts all you can do is identify high probability points where the market shows signs of buyers/sellers coming in so that you can catch the wave of buying/selling pressure…how far it takes you is anyone’s guess but by knowing where the next level of support/resistance is you can make an educated guess.
For upside momentum to remain healthy I’d have to say that we shouldn’t expect to see price retrace below the 1.3750 area and hold below it. I wouldn’t be surprised to see a retrace to this area but I would expect to see buying come back in soon after to give me the confidence of hanging onto my long position. Let’s see if the market can retest the 1.3850 level and beyond next week.