The Euro initially fell a bit during the trading session on Monday but found enough support to turn things around and form a slightly positive candle. However, really what I’m paying attention to is that we are hanging about the 1.1150 level. That is the middle area of the potential support and resistance that I see. The 1.12 level above is massive resistance, just as the 1.11 level underneath is massive support. With that in mind, I believe that the market is probably going to continue to see a lot of back-and-forth trading, probably within this 100 point range.
EUR USD Forecast Video 21.05.19
If we can get more of a “risk on” attitude around the world, that could help this pair rally. However, as people are a bit more nervous, we will probably break down towards the 1.11 handle, or perhaps even lower. The 1.10 level underneath is massive support, so breaking below there would be extraordinarily bearish for the Euro. I don’t expect that’s going to happen anytime soon, so with that in mind I am expect a lot of back and forth and sloppy trading. This is a market that tends to chop more than anything else anyways, so this shouldn’t be a surprise if you trade the Euro on a somewhat regular basis. I believe that we are currently in the middle of trying to form some type of longer-term bottom, but it’s going to take some time to make that happen. With that in mind, I am optimistic, but that’s more of a longer-term scenario for me. In the meantime I would stick to short-term charts.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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