The Euro went back and forth during the trading session on Monday. Ultimately, this is a market that seems to have a lot of support at the 1.12 level, but recently we have seen the lot of selling. That being the case, it makes sense that we will see a lot of volatility and choppiness. This pair in my estimation is trying to form some type of bottom, which of course is almost always a messy affair. As you can see, I have the 1.12 region shown by a blue circle, which if broken would wipe out a lot of the bullishness.
EUR USD Forecast Video 09.07.19
However, if we can bounce from this area, or at least are grinding to the upside, then we could make a move back to the 1.1350 region. The 200 day EMA is in that general vicinity, so if we were to break above there it could signal good things to come for the Euro. However, we have Deutsche Bank imploding currently, and that of course has people worried about the Euro itself.
On the other side of the equation we have the Federal Reserve cutting interest rates, so that of course should help push this market higher. I think that you are going to see more of the same but it does look like we are at least trying to tilt to the upside. That doesn’t mean it’s going to be easy, and it certainly will be quick. In general I am still slightly bullish, but probably not enough to put large amounts of money into this pair. This looks like a trend change trying to happen, but again, the 1.12 level is crucial.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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