The Euro continues to be very choppy and range bound, but the Friday session should be taken with a grain of salt, as there would have been a serious lack of volume due to the Americans being away at holiday. With that being the case, it is worth noting that we have been drifting a little bit lower in general over the last couple of weeks, but it appears that the 1.12 level and just below is offering support. Some people call this a bullish flag, I think the angle is a little bit steep for that, so I think we are simply chopping around in trying to decide where to go next, something that the Euro does quite often.
EUR/USD Video 06.07.20
We have two central banks involved in this currency pair that are doing everything they can to bring down the value of their own currencies, as they buy anything with the word “Bond” attached to it. With this, I think that we will continue to see a lot of choppy and sloppy trading, but it may come down to risk appetite more than anything else as to where this pair goes next.
To the upside, the 1.14 level is the beginning of a massive resistance barrier that extends to the 1.15 handle, just as underneath I think there is a significant amount of support extending from the 1.10 level down to the 1.07 level. I do not expect either one of these levels to be taken out anytime soon, as we simply grind back and forth in a relatively tight range. If you look back at historical charts, you will see that is what the Euro typically does.
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This article was originally posted on FX Empire
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