The Euro has gone back and forth during the trading session on Friday, showing signs of confusion yet again just below the 1.13 level. Because of this, it is likely that we are going to see back and forth behavior heading into the weekend and perhaps even at the open. We are currently trading in a sloppy range between the 1.14 level on the top and the 1.12 level on the bottom. The market breaking out of that range would be rather important, but it is much easier for this market to fall at the moment that it is to rise, as the 1.14 level is a massive resistance barrier that extends all the way to at least the 1.15 handle a break above that level however would change the overall attitude of the markets and could send this market much higher over the longer term.
EUR/USD Video 13.07.20
On the other hand, if we were to break below the 1.1180 level, that opens up massive selling pressure to reach right back down towards the 1.10 level underneath, perhaps even lower than that. That being said, the market has been stubborn in its up pressure over the last several weeks. With this, I think we are simply compressing for a bigger move but do not have the energy or the catalyst to make it quite yet. With that in mind, I do believe there is a nice trade coming, but we just are not there at the moment. Because of this, short-term choppy back-and-forth trading probably continues to be the best way to handle this market, which quite frankly is pretty normal for the Euro.
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This article was originally posted on FX Empire
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