The EUR/USD pair has pulled back a bit during the Friday session, forming a very negative candle stick. That being said though, we are in a tight range of 100 pips, so having said that we don’t have anywhere to go in the short term. Ultimately, this is a market that although very bearish during the Friday session, there isn’t much room to move. The 61.8% Fibonacci retracement level underneath the 1.12 level of course offer support as well. However, when you look at the 1.13 level, you can see that there are several shooting stars just above from a couple of weeks ago. In other words, there’s nowhere to go from here.
EUR/USD Video 22.07.19
We will eventually break out, obviously. All we need is some type of impulsive candle stick to tell us when we are ready to get moving. The biggest problem here is that the central banks in both the United States and the European Union look likely to do nothing but monetary easing, and therefore both of these currencies are going to be soft and therefore somewhat directionless against each other.
If we break down below the 61.8% Fibonacci retracement level, then we are likely to go looking towards the 1.11 handle underneath. To the upside, if we were to clear the shooting stars from a couple of weeks ago, we will probably go looking towards 1.1350 level above. Ultimately, this is a market that continues to show a lot of confusion so short-term trading and the 100 PIP range is probably as good as it gets.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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