Ultimately, this is a market that sold off quite drastically, and it was probably only a matter of time before the buyers returned. Because of this, I think this is a situation where traders continue to look at this through the prism of a market that is trying to do with the idea of what crude oils doing, but at the same time, with the European Central Bank could do, as the ECB has recently cut rates. However, so has the Bank of Canada.The fact that we ended up forming a bit of a hammer of course is a bullish sign as well, but quite frankly the market doesn’t look like it has anywhere to be in the short term. I think this is more or less going to be a bit of a grind, and therefore I think it’s going to be difficult to hang on to this position, but I do think that given enough time, this market looks as if it is ready to rally. The alternate scenarioThere is the possibility that we will break down below the 1.46 level, and then I think we have to fight the 1.45 level as well. Breaking down below that level would obviously be a very negative turn of events, opening up the possibility of the market dropping quite significantly. I don’t necessarily think that’s going to happen, but it is something that we need to keep an eye out for, as the market has quite a bit to worry about, and therefore digest. Given enough time, we need some clarity, but it looks like the buyers have finally had enough of the selling pressure, and that they might be willing to step in and take advantage of “cheap euros.”More By This Author:Pairs In Focus – Sunday, June 23S&P 500 Forecast: Pressure From BuyersEUR/CHF Forecast: Bounces after SNB Rate Cuts
