Interesting pair the EURUSD , not in the least because of the number of discussions going on regarding on the EUR side and the scream that it would go to parity, coupled with the long awaited and ever postponed rate hike on USD side. And then you see price going the opposite way.
Depending on the time frame you are looking at you see a trend reversal or not. As I trade the 240 minute time frame for me the trend has reversed quite some time ago and has been putting in higher highs and higher lows ever since. This trend has not been broken yet, despite the completion of a nice .
The itself is still valid, unless price would break into the upper red zone, so the decision point for me looking for a trend reversal will be on the border of the upper orange and red zones.
If price fails to break into that upper red zone I will be looking for a retracement into the green zone, which in my opinion will be limited by the resistance around 1.1290 and the beginning of the orange zone. Breaking into that can bring us all the way down to the border of the red zone ...
- on the 240 min time frame we are in an uptrend and until we create a lower low and lower high my bias is on this pair. I am not looking for shorting opportunities at this moment
- the pair currently seems to depend mostly on USD data which has been on the negative side, so a further move up is definitely possible, despite the program and the hype around parity. Also the rate hike keeps getting postponed (first it was May, now there are rumours about September and if you ask me, it will not happen this year unless data for the US improves a lot)
So, what is your opinion about EURUSD , are you looking long or short, and why ?