The Euro continues to grind higher against the US dollar during New Year’s Eve trading, as we see quite a bit of interest coming back into the marketplace. With that being the case, the market is likely to continue seeing buyers on dips, now that the 1.12 level looks to be left in the rearview mirror. If that’s going to be the case, it’s very likely that we could go as high as 1.14 now. Whether or not this is a longer-term trend change is a bit of a question at this point, but it certainly looks as if it could lead to something somewhat significant, at least in the short term. Pullbacks at this point should continue to see support at the 1.12 handle, and perhaps even as low as the 200 day EMA.
Longer-term, it looks as if we are trying to break out of the US dollar strengthening in general, so the question now is whether or not that can roll right over into 2020. Ultimately, I do believe that might be the case, but the first couple of sessions for the year will be very thin and therefore can only be relied on so much. At that point, we will start to see more money flow into the marketplace and therefore quite a bit more in the way of conviction. Currently though, it certainly looks as if the buyers are starting to flex their muscles, and we also have the 50 day EMA underneath getting ready to cross the 200 day EMA suggests that we could get the so-called “golden cross” going forward.
This article was originally posted on FX Empire
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