The EURUSD uptrend is continuing this week, with the pair up another 170 pips on Monday.
The euro spent most of last week ranging after an incredible two-day rally spanning over 500 pips.
Although bulls are firmly in control, the EURUSD is getting pretty stretched at current levels.
Additionally, the pair is facing key resistance on the monthly time frame from the 2008 closing prices.
The level appears to come in around 1.1360, making it one to watch this week.
Despite being stretched, the aggressive EURUSD uptrend since March leaves buyers in control and makes buying dips the smart decision among trend traders.
If we see the EURUSD fail to hold levels like 1.1360 on the higher time frames, a return to the April 10th and 11th imbalance could be in order.
But again, this would only materialize on a sustained break back below 1.1360.
Until then, the euro is eyeing the next key resistance at 1.1660, with immediate resistance coming in at 1.1530 this week.
As for me, I would prefer to see the EURUSD sweep the sell-side imbalance at 1.1200 and below before considering a long.
Trying to buy at current levels is too risky, in my opinion, especially with this week’s PMI numbers out of Europe and the US.
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