The Euro has broken down significantly during the trading session on Friday, as we have seen a major breach of support. That being the case, the market looks very likely to continue to reach lower from here, but even if we rally from here there is a significant amount of resistance near the 1.1250 handle, and the 50 day EMA. The area that I have circled during the previous session was a sign of a place that could have made a major difference in the attitude of this market. I still believe that if we can break above the shooting stars that I have circled on the chart, it should send this market much higher. However, after the candle stick that has formed post jobs number, it’s possible that we reached down towards the 1.12 level where I see support.
EUR/USD Video 08.07.19
It will be interesting to see how the market looks going forward, because in the short term it looks like people are concerned that the Federal Reserve may not be as quick to cut interest rates as everyone hoped. I do think that eventually we will get a snapback, and as a result it’s very likely that the market will turn around given enough time. Thin volume could have been a major factor in what we are seeing, so keep that in mind. I would not be a seller, rather I’m looking for a buying opportunity as long as we can stay above 1.12 underneath. Ultimately, the market has been forming a longer-term bottoming pattern.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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