By FXEmpire.com
The EUR/USD pair had a positive session on Monday as the rumors of a plan in Europe continue to work their way around the currency desks globally. The fact is that the Europeans have had one “plan” after another, and not much has changed. Adding to the “hopium” trade is the fact that there is supposed to be a conference call between finance ministers of the G7 countries, but this too has been done before. In reality, the Europeans simply don’t know what they are dealing with until the June 17 Greek elections are done and over with.
The pair is decidedly bearish, but there is certainly something to be said for the resiliency of this pair at times. It seems that every time the Euro seems flat on its back – hope enters the markets on some kind of plan to plan. This could be what’s coming, but as far at the technical analysis is concerned, it is hard to find a reason to buy this pair for anything other than the fact that the pair could be highly oversold. Bounces like that only provide a higher level from which to sell for us, and this is exactly how we are looking at this pair at the moment.
The 1.25 level has contained price so far, and this is the first major test of the bulls in this pair. The action was sudden, only to stop dead in its tracks at the area. The level should attract serious sellers, but it is possible that some kind of announcement could get the bears covering. None the less though, the trend is still down, and there is a significantly larger chance of negative headlines than positive one. It is because of this that we simply won’t try to buy this pair at the moment.
Jesse Livermore once said that traders get paid to wait. This is exactly how we feel about this pair at the moment, and the selling of this market is the only way to approach this pair. Because of this, we are waiting until we get a bearish daily candle that shows a continuation of the bearish action in order to sell.
Click here to read EUR/USD Technical Analysis.
Originally posted here
