The Euro went back and forth during the trading session on Friday as the market kind of limped its way into the weekend. The currency markets have been relatively range bound for several sessions now, so this should not be a huge surprise. Ultimately, I do think that this is a market that has a hard ceiling in the range between 1.14 and 1.15 above. Furthermore, I think there is a bit of a floor in the market near the 1.12 handle, but if we can break down below there it is very likely that the Euro will go looking towards the 1.1050 area, where we see the 200 day EMA, and then after that we could be looking at the 1.10 level.
EUR/USD Video 29.06.20
The Euro of course is going to react to the overall strength and weakness of the US dollar, which could be all over the place due to the fact that people are concerned about the coronavirus figures, and of course the lack of global growth. If we continue to see concerns, it is likely that traders will go looking towards something along the lines of the US Treasury market, thereby finding a bit of shelter when it comes to risk appetite. In general, though, I think we are simply bouncing around here trying to figure out whether or not the most recent parabolic move is trying to form a bullish flag, or if it is getting a bit tired. The next several candlesticks could be crucial, but as things stand right now, I am more than willing to fade rallies that show signs of exhaustion.
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This article was originally posted on FX Empire
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