The Euro has shot higher during the trading session again on Wednesday as we continue to see a lot of depreciation when it comes to the US dollar. Ultimately, this is a market that is going to continue to find buyers on dips. It looks like at this point we are still a little bit stretched and we may pull back a bit. If we do that should end up being a nice buying opportunity as it gives you an opportunity to pick up “cheap euros.”
EUR/USD Video 06.08.20
I do believe that the Euro is heading towards the 1.20 level, so with this being the case it is likely that the breakout is coming, and the breakout of course will attract a lot of attention. At this point though, you would be chasing the trade as we have had a couple of days of building in order to show strength that we have had. If you are buying here, you are “chasing the trade.”
Look for value and take advantage of it. That has been the best way to trade the markets in general, as we are looking at the 1.17 level as a bit of a “floor” in the market. That was a major resistance barrier, and it is obvious at this point in time that we are in a longer term trend change process. This tends to be very messy, and therefore it is likely that we will get the occasional back-and-forth that offers opportunities on dips.
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This article was originally posted on FX Empire