With that being the case, I like the idea of fading short term rallies, but I also recognize that this pair is notoriously sideways most of the time. This is without a doubt one of the worst pairs of trade, probably because of the efficiency. With that being said, it is a good gauge on US dollar strength or weakness, and it looks like the US dollar is at least trying to strengthen a little bit during the trading session.
So, with that in mind, you may extrapolate some of this information into other pairs that you trade. If we do fall from here, the 1.06 level would be the significant support that we bounce from. But if we break higher, then you have to pay attention to the 50 day EMA, which happens to sit right around the 1.08 level, which in and of itself has a certain amount of psychology attached to it.
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