The Euro has rallied again during trading on Monday to kick off the week, reaching slightly above the 1.12 level early in the day. That being said, there is a “decision zone” right around the 1.12 handle, as it has seen both buying and selling as of late. In these areas, you are better off to let the market decide where it wants to go before trying to follow it. Simply putting money to work right away is dangerous, as a major support or resistance level isn’t just the big figure itself but tends to be more of a range.
With that in mind, selling pressure should pick up below the 1.1175 handle, just as the buyers should take over if the market breaks above the 1.1225 handle. This means that the next couple of days are going to be very crucial and could give market participants a bit of clarity going forward. However, the money sometimes is made by waiting for the market to tell you where it wants to go. A daily close in either the blue or red zone should be an opportunity for placing a larger trade.
In the meantime, the market should be left alone and simply observed as this is where a lot of traders will be chopped up. At this point, the market is in the process of trying to make some type of major decision, and this is where trading can be very dangerous. Let the market decide what is going to do next, and simply follow the overall attitude. At this point, with New Year’s Day being Wednesday it’s very likely that the volume in the markets will be thin, so it’s possible we may not get the correct move until the end of the week, possibly even beginning of next week. Do not jump the gun here, wait for the market to tell you where it wants to be.
With that in mind, selling pressure should pick up below the 1.1175 handle, just as the buyers should take over if the market breaks above the 1.1225 handle. This means that the next couple of days are going to be very crucial and could give market participants a bit of clarity going forward. However, the money sometimes is made by waiting for the market to tell you where it wants to go. A daily close in either the blue or red zone should be an opportunity for placing a larger trade.
In the meantime, the market should be left alone and simply observed as this is where a lot of traders will be chopped up. At this point, the market is in the process of trying to make some type of major decision, and this is where trading can be very dangerous. Let the market decide what is going to do next, and simply follow the overall attitude. At this point, with New Year’s Day being Wednesday it’s very likely that the volume in the markets will be thin, so it’s possible we may not get the correct move until the end of the week, possibly even beginning of next week. Do not jump the gun here, wait for the market to tell you where it wants to be.