The EUR/USD pair did very little during the session as we went back and forth but essentially got nowhere. This market looks like it’s starting to overextended itself a little bit, but we have to admit that the recent low is higher than the previous ones. With this in mind, we feel that the 1.29 level is now the floor in this marketplace, while the 1.3150 level continues to be the ceiling. Because of this, we are not interested in buying at this point as it would simply be “chasing the trade.”
We like shorting appear on signs of weakness, so the first daily candle that looks like a selling opportunity, we will do so. Alternately, if we managed to break the lows of the neutral candle for the Thursday session, we think that would be a feasible sell signal to. Keep in mind though, this is a relatively tight consolidation area and any move that we may would be relatively short term.
