By: DailyForex.com

The EUR/USD pair fell initially during the session on Thursday, testing the 1.3250 level, and finding support there. This support cause the market to bounce and form a hammer, which of course is a fairly bullish sign. If we can get back above the 1.33 level though, the market then will have to argue with the cluster that is sitting in the neighborhood of 1.3375, which is an area I do not believe the market will break above. Even if it did, we still have to deal with the 1.3450 level, and more importantly the 1.35 level which is a major one as far as I can see.

I think that a break down below the bottom of the hammer is a nice selling opportunity as well, as we should eventually head to the 1.30 level which is my longer-term target anyway. That’s the next major support area, and as a result the market will in fact try to get there given enough time. That doesn’t mean that we won’t bounce, and that’s exactly what I’m expecting at the moment. With that, I am a seller on these bounces that show signs of resistance, and will even look to hourly charts to make entries.

Nice trend, don’t find it.

It’s a nice trend as you can see, and as a result I believe that the market will continue to offer plenty of selling opportunities, on the shorter-term charts. The 1.3350 level in my opinion should offer the first selling opportunity on a bounce, and I would not hesitate to sell a resistant looking candle in that general region. I believe that every time this market bounces, there will be sellers willing to step in and press the issue. I also think that the 1.30 level is probably about as far as we go to the downside for the next several months. With that, I am bearish but I am looking for small gains, as easy money is probably been made anyway. With that, short-term trade will be the way to go as the day traders will take over.

EURUSD 82214

Related Articles
  1. Savings

    What Your Credit Score Means for Your Love Life

    Wondering if your significant other wants to commit and is reliable? The Fed might have the answer.
  2. Entrepreneurship

    ‘Happy Birthday to You’ Belongs to Everyone Now

    A class action lawsuit over the copyright to the iconic American song “Happy Birthday to You” ends by placing the ubiquitous ditty in the public domain.
  3. Savings

    Can You Afford a Financial Advisor?

    Don't think you can afford a financial advisor? Think again. Here's why you should reconsider hiring an advisor.
  4. Mutual Funds & ETFs

    Top 3 VALIC Funds for Retirement Diversification in 2016

    Learn about the VALIC fund family, its performance relative to its peers and the top three VALIC funds to consider for retirement diversification in 2016.
  5. Investing News

    Is Multinational Tax Avoidance at an End?

    Are governments doing enough to end corporate tax avoidance?
  6. Investing News

    Stocks with Big Dividend Yields: 'It's a Trap!'

    Should you seek high yielding-dividend stocks in the current investment environment?
  7. Investing News

    Negative Interest Rates and QE: 3 Economic Risks

    Along with quantitative easing (QE), unconventional monetary tools are meant to stimulate economic activity, growth, and a moderate level of inflation.
  8. Investing News

    Should You Be Betting with Buffett Right Now?

    Following Warren Buffett's stock picks has historically been a good strategy. Is considering his biggest holdings in 2016 a good idea?
  9. Investing News

    Is the White House too Optimistic on the Economy?

    Are the White House's economic growth projections for 2016 and 2017 realistic or too optimistic?
  10. Entrepreneurship

    Top Legal Tips for Starting a Business

    Before you launch a new business, make sure you're on top of the key issues that most startups face.
RELATED FAQS
  1. When does a growth stock turn into a value opportunity?

    A growth stock turns into a value opportunity when it trades at a reasonable multiple of the company's earnings per share ... Read Full Answer >>
  2. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  3. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  4. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  5. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  6. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center