Whether or not this support holds remains to be seen, but we have gotten through the ECB and its rate cut and have held firm. That’s a generally good sign. So, it’ll be interesting to see how this plays out. Above us, we have the 50 day EMA, which is close to the 0.85.50 level. And if we can break above there, then the market could go looking to the 0.86 level.
The Latest Swing Low Is CrucialIf we were to break down below the latest swing low somewhere near 0.8480, then I think the pair finds itself in significant trouble, probably aiming for the 0.84 level before it is all said and done. I do expect a lot of noise and volatility, so really choppy behavior is what I am looking at as a very real possibility.Ultimately, this is a market that you will have to be somewhat cautious with, but I think it definitely favors the upside in the short term. Whether or not we can get a sustained move to the upside remains to be seen. But right now, it certainly looks like buyers are willing to step in and defend this crucial 0.85 level. 
As long as that’s the case, then it does make sense to have short-term long positions in this market, as it has been fairly reliable around the 0.85 level. Whether or not that changes anytime soon remains to be seen but we will have to wait and see.More By This Author:USD/CHF Forecast: Looking For SupportHeng Seng Forecast: Pulls BackGBP/JPY Forecast: GBP Recovers Nicely Against The Yen
