Last week we expected Euro to continue the bullish correction. EURUSD rose 2% last week, credit goes to reports of improvement in talks between Greece and creditors along with better than expected bond auctions from Spain and France.
Though this rally may not last much longer but we could very well try to ride it while it last.
Let’s quickly look at EURUSD daily chart:
EURUSD broke above the trendline on daily chart and came back down to retest on Friday. We can clearly see that price bounced off from the trendline after retest which is a good sign that market is also monitoring the same trendline as us. This week we can expect price to continue moving up towards the next Resistance level at 1.3080 – 1.3100
Keep in mind the holiday in China and other Asian countries as they celebrate beginning of New Year. I won’t be surprised if we see thin markets for a day or two.
Forex Trading Signal : Look for opportunities to go long until 1.3100, once price gets there we can expect a small reversal. We will then wait for clear Breakout above 1.3100 before taking any long trades.