By FXEmpire.com
The EUR/USD pair fell hard for the week as the markets reacted to poor job numbers in the United States on Friday. The pair also has to think about elections in France and Greece as well, and the reaction of the markets will be telling over the next few sessions. Because of this, there is a possibility that the 1.30 level could finally give way.
The triangle that has formed has been gradually tightening over time, and there is a real chance that the momentum should pick back up if we break down. The bearish pressure on this pair should continue, and as a result we are thinking sell only. However, the 1.30 level is simply too close to ignore at this point, and as a result we are going to wait until a weekly close below that number.
The pair is at a possible crossroads now, and this next week or two could send the pair much lower. However, there are rumors of central banks in Asia buying at the 1.30 level in order to protect their diversification of currencies. This level has continued to be a thorn in the side of the bears, and you have to think that if it finally gives way – the floodgates will open.
The market has continually bounce from the 1.30 to 1.31 levels, and it is of no accident that we find it closing just above the area on Friday. This is one of the things that have us watching closely, and because of this we are sitting tight from a long-term trading standpoint. The 1.30 level is absolutely crucial, and as a result it is our one strong signal.
There is always the possibility of Euro bullishness to enter the markets as well, but we would need to see the 1.35 level give way to be convinced by the move. Until that happens, we simply cannot make the case for buying this currency as there are simply far too many problems in that area. In fact, we feel the real problems have only just started.
Click here a current EUR/USD Chart.
Originally posted here
