The EUR/USD last week, did remain capped below the 138.56 level for some time indicating a serious level of resistance before breaking, to then trudged higher toward the 1.4000
As stated on the 24th of Feb Eur/usd overview (24th Feb)“Momentum continues to build in favour of the uptrend, A key test will be the break of 1.3856, which mark the annual highs. A break here could open the floodgates towards the 1.4000 handle; a level easily achievable especially with recent ECB inflation concerns. “
If buyers are able to build a strong value area above here( 138.56 ) ,
then it is highly probable that higher prices will be seen over the next week with a possible pick up in momentum as the primary trend accelerates .
On the Flip side –
Sellers will look to squeeze the market lower forcing out the ‘breakout’ players and hopefully drop the market below the 138 handle . From here the next key support levels of 137.53/39 will look to be tested to see if it will send prices spiralling toward the 135.66 with potentially an overshoot to the 135.00
handle as long positions stop out.
Freshley Squeezed View
Continues to stick with the trend until it changes – approach continues to be to buy dips .