Forex Marketz Daily Forex News – Fully Markets Update
The EUR/USD pair tried to rally during the session on Monday again, but as you can see ended up pulling back to form a shooting star. This isn’t much of a surprise though, the downtrend has been very strong. However, the fact that we failed to hang onto the gains during the session tells us that the selling pressure is starting to expand again, and that means that we should see the market drop even farther from here.
I believe that the 1.11 level below is the next target, and then beyond there we could go as low as the 1.10 level next. With that, I believe that selling is the only thing that can be done, and that anytime this market rallies on the short-term chart, it ends up being a nice selling opportunity. Think of it is “value” in the US dollar as it is without a doubt one of the most favored currencies in the world right now.
I think eventually the 1.10 level gets broken to the downside and we had to the parity level. This is truly surprising though, because just six months ago I would’ve never imagined saying that. However, it is clear that there are massive amounts of problems in the European Union, and that they simply are not going away. Greece still looms large, as does several other countries and their banking systems. With that, I believe that any rally would have to be looked at with suspicion. I also believe that the 1.15 level above is massively resistive, and that the resistance extends all the way to the 1.1650 handle. In other words, it’s going to be sell and sell again in this market.
