Can’t Stop Me Now – EUR/USD Makes New Highs
Skerdian Meta • 1 min read
The Euro has been in high demand since the first round of French elections. However, the 1.10 level in EUR/USD remained solid, despite a short lived spike (gap) last week. We moved back to 1.0830 last week, although there was no selling momentum.
So, the upside still looked favourable and last Friday EUR/USD made its first leg higher after the US inflation numbers. Yesterday, this forex pair made the second leg, reaching 1.0990 in the afternoon, which brought the 1.10 level back into play.
But while other major currencies retraced lower against the Buck during the afternoon, EUR/USD barely made a handful of pips, thus sticking close to the 1.10 level.
This sort of price action made it perfectly clear that it was a matter of time before 1.10 went bust and so it did. It broke above that resistance level this morning and it´s now headed toward 1.11.
This is not good for our long-term forex signal in this pair. Nonetheless, it´s becoming overbought on the daily forex chart and the weekly chart is already overbought, so there´s a chance or two for a retrace back lower.
Weekly chart is overbought, but there´s no resistance nearby
The economic data from the Eurozone is pretty light this week, so I don´t expect anything from that front. The ECB (European Central Bank) president Draghi is speaking on Thursday evening, so we´re counting on him, as well as on market sentiment, for our forex signal.
We must be honest with ourselves when trading forex and these are the only two hopes for our signal at the moment,. So let´s hope they take charge of this pair and reverse it back down.