The pair is maintaining a bullish attitude and we intend to play it that way
This week we are exploring the opportunities provided by the EURUSD pair. In today’s trading we have observed very tight ranges, however with modest data points on Monday this doesn’t come as a big surprise and we would be very interested to know more about underlying trends in the pair. For now we will be looking for a level to buy calls.
However we are not very comfortable to buy here, that’s why we will take a pause for now and look for lower levels to appear. The first support level that we have identified on the chart is around 1.3695. This is why for now our preference is to buy daily calls on an approach to 1.3690. Should this level proves to be difficult to support we would be looking for a break higher, but for now we stick to this call.
Last week the pair moved substantially higher from a low about 1.3525 to current levels around 1.3722. The full 200 pips rise was helped a lot by the fact that Mario Draghi from the ECB communicated during his press conference on Thursday that they are not likely to move rates any time soon and further support for the banking system is our of the question at this juncture.
On Friday the pair experienced wild swings as the terrific us non-farm payrolls came out at 203,000 and the unemployment rate dropped to 7%. However the market remained unconvinced about the desire of the Federal Reserve to start withdrawing stimulative policies that are currently weighing on the US dollar.
Only a sustained break on a daily basis below 1.3650 would shatter our bullish attitude. As the pair is far away from these levels right now we are inclined to believe that we will remain on the right side of the market.
So, to sum up, for now we are looking for a drop to buy calls on a daily basis. Should you have any questions do not hesitate to ask them in the forum section while we keep analyzing the situation and providing you with our findings.