The Euro initially fell during trading on Thursday but continues to find buyers underneath in a sign that perhaps we will find more consolidation up at these nosebleed levels rather than some type of major pullback. The last time we shot straight up in the air we did up forming a bullish flag. This very well could be what we see again because the trade is so heavily balanced towards one direction.
The 1.18 level has caused a significant amount of trouble but given enough time it is very likely that the market will eventually break above there. After all, the trend has changed, and I think that continues to be a major driver of where we go. Longer-term, I think we will eventually go looking towards the 1.20 level, perhaps even higher than that. A pullback from here should find plenty of buyers at the 1.17 handle, and then the 1.16 handle.
EUR/USD Video 31.07.20
I believe that there is essentially a “floor” in the market near the 1.15 level, and I would be very surprised to see this market break down below that crucial level. If it does, that could shake a lot of this up. However, that looks very unlikely to happen, so I am not overly concerned about that possibility right now. In fact, I think that the longer-term trend has changed and I think the majority of traders will be looking to buy dips going forward and push the Euro to much higher levels, perhaps even as high as the 1.25 level over the course of the next year or so.
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This article was originally posted on FX Empire
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