Thursday, March 5, 2015

Time to buy the EUR/USD after it hit 11 year low?

Time to buy the Euro for a change?? Those who have been following my trading style know that I'm usually (really) bearish on the EUR/USD. Rarely has there been a situation where I'm actually 'optimistic' about this currency pair. This is one of those rare scenarios. The EUR/USD dropped too rapidly over a short amount of time in my opinion. Already traders are speculating that it could be trading around 1.10 and below very soon, well guess what happened, after the news and blog wrote about that price point the currency pair was already trading around 1.10 it dropped so quickly!

Let's take a look at where the pair stands as of right now:

This time of writing the EUR/USD is hovering around 1.1022. As you can see, from a technical standpoint, the pair gained momentum around 12:30 (on the chart) and then it fell back to a price point we haven't seen in 11 years. The thing is, like I said before, it too quick of a drop and a recovery is bound to happen very soon. Just like that spike at 13:30, it likely to happen again. Buying the EUR/USD at 1.10 was unthinkable not that long ago. I guess if it breaks under 1.09 all bets are off the table for me, then we'll see when this downtrend is going to end. But as long as it's trading around 1.10 I'm preparing for an upswing to 1.11 and beyond. 

In the game

As of right now I'm bullish, with a target of 1.11 and SL of 1.0990.
It's going to be interesting to see what happens in the upcoming days with the EUR/USD, I'm keeping a close eye on this that's for sure!

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