EUR/USD Forecast December 6, 2016, Technical Analysis

The EUR/USD pair had a very bullish turn around during the Monday session, as we initially sold off and reached towards the 1.05 level. We found plenty of support there, possibly from the European Central Bank, and then shot towards the 1.0725 level. Ultimately, this is a very bullish candle that should send this market to the upside, but given enough time I think the sellers are coming back given enough the massive downtrend. Because of this, I’m going to sit on the sidelines and wait for the surprise rally in response to the Italian referendum to wear off, so that I can take advantage of what is obviously a strong move lower over the longer term.