As I'm sure many of you are wondering what my view is on the EURUSD pair I figured it would be a good time over the weekend to show you what I'm currently looking at and considering. Unfortunately, you may be disappointed. Obviously we did a great job anticipating the rise on the EURUSD pair in the 1.05 to 1.06 region, however.....we did not anticipate for the market to react so strongly. Many may be thinking that this pair is now going to continue it's sky rocket and shoot for the moon....as the title of this post suggests I urge you to remain neutral at this point in time. While the rise on the EURUSD was sharp and quick...it turned abruptly at a very key technical level on the daily and weekly charts....the level which offered us the selling opportunity down to 1.05 in the first place. You can see the level on the as well as here on the weekly.
As we move forward in the next several days of trading I urge those trading the EURUSD pair to do so with caution and remain reluctant about being incredibly at this point. It is very possible that for the next several weeks we stay consolidated/ranging , but pay close attention to the 2 highlighted areas as strong levels of resistance. One is an extension of the super trend that was broken, the other is a still very current weekly resistance. Both of these levels are still 100% intact and for that reason I will not be looking to buy EURUSD until a larger break occurs, or another sort of opportunity materializes on the 4 hour.
To sum it up, rise was sharp and expected but Key Technical Resistances were not broken. I remain neutral for the immediate future and will wait for the market to continue to digest this sharp movement and form another trade opportunity.
Please do your own analysis before entering a trade. If you like what you see feel free to comment, follow or "like"