EURUSD spent a second week consolidating between 1.1700 support and 1.1900 resistance.
It isn’t surprising considering the aggressiveness of the July rally.
Many who entered during that rally have taken profit, while others who were on the sideline have had time to accumulate.
That’s what makes consolidation like this healthy for any trend.
If you saw my posts in July, you know I was getting bullish on the EURUSD for a move into the 1.1600 region.
As long as EURUSD remains above 1.1600 on a daily closing basis, I like the idea of a higher euro against the USD.
That said, it’s going to take a daily close above 1.1900 to trigger the next leg higher toward the 1.2090 resistance area.
If we do see EURUSD extend above 1.1900, though, I wouldn’t be surprised to see 1.2500 later this year.
It isn’t surprising considering the aggressiveness of the July rally.
Many who entered during that rally have taken profit, while others who were on the sideline have had time to accumulate.
That’s what makes consolidation like this healthy for any trend.
If you saw my posts in July, you know I was getting bullish on the EURUSD for a move into the 1.1600 region.
As long as EURUSD remains above 1.1600 on a daily closing basis, I like the idea of a higher euro against the USD.
That said, it’s going to take a daily close above 1.1900 to trigger the next leg higher toward the 1.2090 resistance area.
If we do see EURUSD extend above 1.1900, though, I wouldn’t be surprised to see 1.2500 later this year.