The Euro has shown itself to be very lazy during the trading session on Thursday, as we continue to hover just above the 1.10 level. This is a market that has been very choppy over the last three years, but it has been consistently negative over the longer term. Because of this I like the idea of fading rallies in general but recognize that the 1.10 level will attract a lot of attention in general. The question now isn’t so much whether or not the market is going to react to the 1.10 level, but whether or not it will be a “double bottom”, or just simply a short-term bounce. If we can break down below the 1.10 level, then the market probably opens up the door to the 1.09 handle.
EURUSD analysis Video 29.11.19
If we break down below that level, then we could be talking about the 1.0750 level. That’s an area that features a major gap from previous trading, and at this point it’s difficult to imagine a scenario where we don’t try to get down there given enough time. All things being equal, this is a market that continues to offer selling opportunities every time it rallies, and quite frankly I don’t have a scenario in which I am a buyer at this point. That being said, we have to keep flexible so if we were to break above the 200 day EMA you could make an argument that something has changed. However, and tell that I look at rallies as an opportunity to sell the Euro, as it has proven to be so for so long.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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