The EUR/USD pair had a volatile session on Thursday, as we initially rallied, but found enough resistance near the 1.1450 level to roll over and fall significantly. We broke below the 1.14 level during the day, and then bounced a bit. I believe that the market is trying to roll over, and I find the recent action a bit concerning. We are getting close to topping out of the longer-term consolidation, as the 1.15 level above has been massively resistive. Any rally at this point should be a selling opportunity, until we can break above that level. I believe that the volatility will still be very extreme, and because of this you should be a bit nimble when it comes to trading this pair. I believe that the overhang of resistance will continue to be an issue, and with Janet Yellen speaking in front of Congress, there is a lot for people to digest when it comes to the value of the US dollar.
Volatility
Volatility should continue to be strong, but I think that should offer a significant amount of opportunity for this market. And exhaustive candle is a nice opportunity, and I believe that the market will continue to treat them as such. The last couple of sessions have seen a complete wipeout of the gains from Tuesday, which is a repudiation of the buying pressure. I think that eventually we will see this market roll over completely. However, I do recognize that a daily close above the 1.15 level would be extraordinarily bullish as it breaks a three-year consolidation area. Until then, I should believe that this pair is overbought in general. Because of this, I’m looking for selling opportunities in the short term, and believe that it could turn into a longer-term proposition.
EURUSD analysis Video 14.7.17
This article was originally posted on FX Empire