The EUR/USD pair rallied during the day on Monday, after it was revealed that Italy is leaning towards staying in the common currency, which of course is a huge fear of a lot of traders, and I believe that the market is going to continue the technical move that we have seen on the weekly chart showing bullish pressure.
The Euro rallied a bit during the trading session on Monday as it was stated that the Italians were planning on trying to stay in the European currency, and that of course helps the Euro itself. Beyond that, there seems to be a lot of hope tied up in the idea of Donald Trump meeting the North Koreans, and then beyond that of course we had a massive hammer on the weekly chart, followed by a slightly positive one, which of course shows that we could be trying to build up bullish pressure to the upside and recapture some of the major losses that we had seen as of late.
Beyond that, the 1.15 level underneath was massive support, just as it was massive resistance in the past. Quite frankly, this was my target for the end of summer, but we got there are far too quickly, and bounce significantly. The European Central Bank could decide later this week on Wednesday that they are getting ready to step away from quantitative easing. If that’s the case, that should continue the upward pressure. Otherwise, we could turn right back around but the 1.15 level underneath is massive support, and it’s going to take a lot to break down through there. With that being the case, I like the idea of buying dips in the short term but recognize that we will continue to be very volatile in general.