Euro rallies again on Thursday

The Euro rallied a bit during the trading session on Thursday, reaching towards 1.1850 level. That’s an area that is somewhat significant in the short term, but I think it’s only a matter of time before the buyers will break above there in continue to go higher. I think short-term pullbacks, at least down to the 1.1750 level, should find plenty of value hunters willing to jump in and take advantage of these moves. Longer-term, I think that the US dollar will strengthen again, but right now it looks very likely that the short-term move will continue to go much higher. I think that the volatility in this market should continue to be a major factor, but I think that it is only a matter of time before we should extend this move. I think that the market will of course move based upon headlines to say the least, as we have recently been told that the ECB may step away from quantitative easing “relatively soon.” That could help the Euro longer-term, but I think at this point the most important thing that we are paying attention to is the fact that we have formed a massive weekly hammer last week, and that of course shows that the 1.15 level should continue to offer plenty of support.

I think that a small position is probably what we need to adhere to as we get a lot of this volatility. I believe the next couple of weeks will be vital.