The Euro went back and forth during the trading session on Tuesday, as we continue to dance around the 1.11 level. This is an area that has been both support and resistance as of late, so don’t be surprised at all to see this market go back and forth and quite frankly struggle. To the upside, the market has to deal with the 1.12 level and of course the 200 day EMA which is painted in black on the chart. Yes, the Monday candlestick was very strong, but we have seen these types of impulsive candles before, but in the end of the overall trend is to the downside.
EUR/USD Forecast Video 04.12.19
The 1.10 level underneath will probably be massive support, so don’t be surprised at all to see that cause a bit of a bounce. However, if we were to break down below that level, then it’s likely that the market breaks down to the 1.09 level. All things being equal, I believe that the market is likely to continue below there and go looking towards 1.0750 level, as the gap down there has yet to be filled. Because of this, the market will more than likely be attracted to that level, and quite frankly it isn’t that difficult to imagine a scenario where there is a major “risk off” situation that since this market much lower. On the upside, if we were to break above the 1.12 handle on a daily or weekly close, that could be a longer-term buying opportunity.
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This article was originally posted on FX Empire
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