The Euro broke down a bit during the trading session on Tuesday, reaching towards the bottom of the recent consolidation area that we have been in for some time. He turned right back around to rally above the 50 day EMA though, and that being the case it’s likely that the market continues to chop around in the same range that we had been in for some time. Beyond that, the market is trading towards the end of the holiday season, and therefore a lot of big players aren’t out there. This is probably one of the least liquid times of year as far as big players are concerned, as most large traders are away at vacations.
EUR/USD Forecast Video 14.08.19
To the upside, I see a significant amount of resistance between here and the 1.13 level, so while I wouldn’t go so far as to suggest that we can’t break above there, I would be the first person to admit that a break higher from here it does have a lot of work to convince everybody else to start buying. If we were to break above the 1.13 level, then we could go higher, perhaps reaching towards the 1.14 handle above. To the downside though, if we were to break down below the 1.1 to handle at a daily close, then we could reach down towards the psychologically and structurally important 1.11 handle underneath.
All things being equal, I believe that this market is going to continue to chop around in this general vicinity for the next several sessions as both central banks look likely to keep very easy monetary policies.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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