The EUR/USD pair has rallied significantly during the trading session on Thursday as CPI figures out of the United States have missed. That has the greenback selling off, and by default has lifted this market. Ultimately, this is a market that has been consolidating between the 1.15 level underneath and the 1.18 level above. In other words, we just simply needed a reason to continue to consolidate in the longer-term range. Beyond that, you can make an argument for a bullish flag on longer-term daily charts.
Ultimately, I think that even though the ECB is suggesting that more stimulus is coming, perhaps the over abundant buying of the greenback is starting to come to a more reasonable level. However, there are so many moving pieces out there that the only thing I think you can count on is a lot of choppiness as there are a lot of concern around the world, especially when it comes to emerging markets. That has put a lot of bearish pressure on the Euro, as people by the greenback. Those situations haven’t changed at all, and quite frankly I think that is what is going to make this pair so difficult to trade, because it’s a proxy for almost everything right now. I much more confident closer to the 1.15 level for buying and selling at the 1.18 level above. It does look like we are trying to form a bit of a bottoming pattern, but I would be very cautious and be looking to bail on a trade as soon as it goes against me. Right now, I see short-term support at the 1.16 level, and resistance at the 1.17 level. I think we may bounce around between these two levels in the short term.
EURUSD analysis Video 14.09.18
This article was originally posted on FX Empire
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