The Euro went back and forth in very choppy and quiet trading during the day on Monday, showing signs that we continue to see support at the 1.12 handle. To the upside, the 1.13 level above is significant resistance, and right now it looks as if we are ready to go back and forth in this 100 point range. Below the 1.12 level we also have the 61.8% Fibonacci retracement level, which of course is something that’s worth paying attention to. All things being equal, it’s very likely that we will continue to bounce around between now and Thursday, when the European Central Bank has its meeting and more importantly its announcement.
EUR USD Forecast Video 23.07.19
If we do break out of this 100 point range, you can start to look towards the move in a measured way, as the 100 point range should open up a 100 point move in one direction or the other. Quite frankly, I think this market is trying to form some type of bottoming pattern longer-term, but the EUR/USD pair is probably one of the worst to trade in the Forex world, unless of course you are looking to scalp on short-term time frames, which is the scenario we find ourselves in now.
If we were to break down below the 1.11 handle, then it opens up the door to much lower pricing. However, if we were to turn around and break above the 1.1450 level, then it opens up the door to much higher pricing but that would be a longer-term investment at this point, and not something that’s actionable anytime soon.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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