1.1950 is a Big Level for the EUR/USD to Crack
Rowan Crosby • 1 min read
One of the more interesting trades of recent times has no doubt been the Euro. I say interesting because it has been really tough to try and find a direction over any period of time. We’ve been bullish, then bearish and now it feels like we are bullish again.
Over the last few trading sessions, we’ve seen the USD really fall away. In fact, since the tax bill made its way through in the US, the USD has really fallen away. Like I’ve mentioned before, a real case of buy the rumour sell the fact.
We are now though looking bullish and to confirm the uptrend, I feel we need to take out the next major resistance level.
1.1950 has been a solid area of resistance for a while now. We tested this ara most recently in November and failed to hold. Previously we have seen us break above the 1.2000 mark, but it wasn’t to be sustained.
In the short-term, I think we can keep pushing through and take this level out. Longer-term I see us putting in a base in the USD and finding strength in the Greenback. I believe tax reform will help turn the USD around.
For now, I will be looking to go with the trend and ride the bullish momentum in the EUR/USD. How long that lasts is another question.