During the Friday session, there isn’t too much in the way of economic announcements to move the marketplace. Is because of this that I think that the technical analysis will continue to win out when it comes to the EUR/USD forecast, and I believe that the market does in fact favor the upside. However, that doesn’t necessarily mean that today will be a positive day.
After all, we did form a shooting star into pretty significant resistance during the session on Friday, which of course is a fairly bearish sign. However, I recognize that the lows keep getting higher and that normally shows that the market is winding up to make a move higher. I also recognize that there is a massive resistance barrier just above, and it’s probably going to take a bit of effort to break out.
I think that once we break above the 1.15 level, this becomes a “buy-and-hold” type currency pair. After all, the Euro has been absolutely brutalize the over the last couple of years, and quite frankly who would’ve possibly be left to sell this currency? If you are thinking about getting into this market and start selling the Euro at this point, you are definitely late.
That’s not to say that the market can pullback, quite frankly I would not be surprised at all to see that happen today. After all, the shooting star is a very negative sign but I think it simply means that we’re going to pullback in order to pick up more buying orders in order to build momentum. After all, Adrian and I both believe that the area between 1.14 and 1.15 is a massive barrier. It’s going to take serious momentum and effort to break out. However, once we get that Herculean effort, we fully anticipate seen this market go much higher for the longer term. In fact, at that point in time we are more than willing to start buying every time it dips.
The session today could drop binds we believe that the “floor” in this market is starting to show itself at the 1.12 level. And by the way, that’s much higher than it was just a couple of weeks ago.
Below is our video of the EUR/USD forecast for Friday…