The euro – US dollar pair has left a gap at the beginning of week that later in the session on Monday was completely covered. We should add with regard to this strategy, that whenever the market makes the gap for any pair, it tends to cover it completely, for example, AUD/USD left a gap on November 25, 2011 by 100 pips in 0.97, and last month it was covered completely.
Similarly, the euro has left two gaps: 1) at 1.2920 and 2) at 1.3085. in a long-term prospect we hope that you will get to that level.
On a technical level, we noticed that the pair has expanded its short-term bullish channel, and currently it is operating well below the weekly pivot. Our strategy is bullish. It can only change if the pair breaks the 1.2430 level.
Therefore, we recommend buying at 1.2470 or if the pair closes above 1.2509, with targets 1.2620 and 1.2710, the stop loss should be placed very tight below 1.2430.
The indicator Momentum and Range are showing moderate bullish signals.

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