The Euro rallied to kick off the week on Monday, showing the 1.12 level as support. At this point, it’s very likely that the market will continue to see buyers underneath, and it’s likely that we will continue to go much higher, but it’s going to take quite a bit of trouble. This is a market that looks as if it’s trying to substantiate a larger “W pattern”, which of course is a very bullish sign. The 50 day EMA is currently being broken again, so in general I believe that we will probably continue to try to reach towards the recent highs at the 1.1350 level.
EUR USD Forecast Video 18.06.19
To the downside, I believe that the 61.8% Fibonacci retracement level underneath is going to continue to be supportive as well. You can see that I have a rectangle drawn on the chart, which I’m using is a support level. To the upside, I do think that we will eventually break to a “higher high”, but you need to be very cautious about over leveraging your position, because if we are in the throes of a turn around to form a trend change, it gets to be very noisy and it gets to be very difficult. This is a scenario determines that you should keep your position size very small, because you will need to ride out the accelerated volatility but if you are willing to hang onto the position, you could do quite well.
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This article was originally posted on FX Empire
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