The EUR/USD pair has initially pulled back slightly during the day on Tuesday, but then broke above the 1.2350 level later in the session. This was a bit of a “risk on” move, as the Chinese look to be trying to calm tensions with the United States. With the idea of a trade war being avoided, that puts more money into other currencies beyond the US dollar, and that of course moves this market. However, we are still within consolidation and I do not expect an explosive moved quite yet. The most important thing I am paying attention to is the uptrend line that continues to be respected. On short-term pullbacks, I’m a buyer and expect this market to go towards the 1.2450 level, which extends resistance to the 1.25 handle. A break above that level frees the market to go towards the 1.32 level longer term.
for more analysis: http://www.dailyforex.com
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