The Euro gapped higher to kick off the trading week on Monday as we are starting to see signs that maybe there's some progress being made in talks between the Americans and the Iranians.
That being said, it will drive down rates, and I think that will have a generally positive effect on the Euro as US interest rates have been extraordinarily strong.
That being said, this is probably a temporary thing because quite frankly this is a situation where traders are going to continue to look at the range and try to trade back and forth. I think a situation exists where we look for signs of exhaustion after short-term rallies to get short again because I do think that there is a very high probability of something spooking the market coming out of the Middle East.
Market Outlook and Key Technical Levels
I'm kind of surprised that traders have gotten this excited, and maybe they haven't, maybe it's just because it's a holiday session and its very thin liquidity. But we've seen good news coming out of the Middle East more than once only to see it turn around completely. Until that changes and we get some type of actual agreement, I just don't see how you can expect a major breakout.
Top Regulated Brokers
I believe somewhere near the 1.1750 level the EUR/USD pair will start to see selling pressure extending all the way to the 1.1850 level. I would like to see a bounce towards that area, signs of exhaustion that I can start shorting.
In the meantime, would I be a buyer of the Euro? Probably not. I actually prefer the British pound, but we could see a little bit of a drift. In short, basically I think the gap probably isn't that big of a deal.
Ready to trade our EUR/USD daily forecast? Here’s a list of some of the top forex brokers in Europe to check out.