The Euro continues to find the 1.10 level very resistive on an almost daily basis, as we had seen a lot of selling pressure just above there, and now are forming the fourth candlestick in a row that has a long wick testing that level. Because of this, it’s very likely that the pair is going to continue to drift lower, perhaps because of bond buying in America, or perhaps even more likely the fact that the European economy is almost certainly going to go into recession. As the US is still positive from an economic standpoint, this makes quite a bit of sense.
EUR/USD Forecast Video 09.10.19
At this point, it’s very likely that the EUR/USD pair is going to go down to the 1.09 level, which we have seen a certain amount of buying at recently. This is a choppy and consolidation driven market, but certainly it has a lot of downward momentum over the longer-term. This is simply yet another scenario where we “fade the rally” which is exactly how the market has been traded for the last 18 months. With that, I like the idea of fading this move, because quite frankly if we were to break back above the 1.10 level after the last four candlesticks, that would be an extraordinarily strong move that would have me reversing the trade as it would be so crucial. Ultimately, I do believe that we not only go to the 1.09 level but much lower. It’s still a market that short-term traders will be attracted to though, because the moves are going to be that big in the moment.
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This article was originally posted on FX Empire
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