EUR/USD falls toward support on Tuesday

The EUR/USD pair initially tried to rally during the session on Tuesday but found the 1.24 level to be a bit too resistive to continue going higher. Because of this, we pulled back towards the 1.2350 level, an area that has been important more than once. Ultimately, I believe that this market should find buyers sooner rather than later, but I also recognize that it could be sloppy trading in the short term. I see the uptrend line underneath as a potential buying opportunity as well, so although it’s been negative during the day on Tuesday, I still think that we will find buyers eventually. I don’t have any interest in shorting this market, least not until we break down below that important uptrend line.

If we did breakdown below the uptrend line, the market would more than likely go to the 1.22 handle underneath, and possibly even the 1.21 level under that, which has been very important in the past, and should attract a lot of attention. A breakdown below that level could turn the uptrend on its head, but I believe that it’s only a matter of time before we go to much higher levels, and a move above the 1.25 level should free this market to go higher for the longer-term move, which in my estimation moves all the way to the 1.32 handle above, based upon the breaking of the top of a bullish flag on the weekly chart. I am cautiously optimistic, but patient enough to wait for signs of buying pressure.