The Euro tried to break above the 1.11 EUR level during the early hours on Monday but has failed to hang onto those gains. By doing so, the market looks as if it is ready to roll over and continue to sell off. At this point, I don’t have any interest in trying to buy this currency pair although we are at extreme lows and could very well see some type of bounce. The 50 day EMA above has continue to offer major resistance, so therefore I think it’s only a matter time before the sellers come in on these bounces.
EUR USD Forecast Video 20.08.19
Looking at the chart, I believe that we will probably go down to the 1.10 EUR level. That’s an area that is major considering that it is a large, round, psychologically significant figure, and of course an area that when I look at the longer-term charts has created a lot of buying and selling pressure. Looking at this chart, I think you continue to fade rallies, although I would not expect massive moves in either direction.
The European Central Bank is very likely to continue its loose monetary policy and perhaps even expand upon it as the Germans are now almost certainly in some type of technical recession. If Germany is struggling like that, the rest of the European Union must certainly be hurting as well. With that in mind, and the fact that people will continue to buy US Treasuries, it makes sense that the US dollar should continue to pick up a bit of momentum against the Euro eventually.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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