The Euro initially fell during the trading session on Wednesday but then turned around to show signs of life again. At this point time, the market is likely to try to bounce a bit, but I also recognize that we are still very much in an uptrend, so I do think that it is only a matter of time before we continue to go higher. With this in mind, I have a target of 1.23 above, and then if we can break above there then I believe that we are looking towards the 1.25 handle which is my longer-term target.
EUR/USD Video 03.06.21
You can clearly see that there are long wicks to the downside showing that there are plenty of buyers. The 50 day EMA is underneath and sloping higher, so it should offer a significant amount of support as well. Ultimately, I think that the market is one that you continue to jump in on short-term dips. This area had recently seen a significant hammer, so that of course comes into play as well.
With all that being said I believe that the market continues to be the one that you should be looking at through the prism of trying to find “value”, buying all of the dips that occur on short-term charts. Because of this, the market will eventually turn around on dips and it is not until we break down below the 1.20 level that I would be concerned about the overall uptrend, and even then, you have the 200 day EMA coming into the picture.
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This article was originally posted on FX Empire
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