This is a large, round, psychologically significant figure, and an area where we had previously seen support and resistance. The last couple of days have solidified this, so it looks to me as if the market will continue to respect the 1.05 level.All of that being said, it is interesting to note that the market had initially tried to rally but then turned around to give up about half of the gains. This suggests to me that we are going to continue to see a bit of hesitation near the 1.
Any rally at this point will be an opportunity as far as I can see, and I have any interest in trying to get long of the euro. In fact, it is not until we break above the 1.0933 level that I would be a buyer of the euro, and it would have to be after the Federal Reserve suggests that they are going to be quite a bit more dovish than people anticipated. That would be a complete reversal by the Fed, so I do not necessarily think that is likely to happen anytime soon.