The Euro has pulled back a bit during the trading session on Wednesday, but then found enough support at the 1.08 level to turn things back around to form a bit of a more bullish candle than initially thought. However, it should be kept in the back of your mind that the Euro tends to be very choppy against the US dollar, so the fact that we are tightening of the range can mean that we are either building up inertia for the next major move, or we are simply getting back to the norm, at this point it’s a bit difficult to tell because we don’t have the benefit of volume in the Forex markets.
EUR/USD Video 09.04.20
All that being said, we need to look for the most logical place for the market to go looking towards, and for me at this point I suspect it is somewhere near the 1.10 level. That will probably attract enough attention on both sides of the market that it could be “fair value” going forward. At this point I believe that you can use these as that idea of US dollar strength or weakness, as it is very highly correlated to the US Dollar Index. At this point in time, the market simply looks as if it is winding back and forth so it’s a bit difficult to trade this market as we are still trying to figure out exactly what it’s going to be longer-term. I would advise state away from the EUR/USD pair of the next several sessions, although I do believe we will try to find our way towards the 1.10 level given enough time.
This article was originally posted on FX Empire
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