The Euro has fallen quite a bit during the trading session on Tuesday to kick the trading session off, as we are reaching down towards the 1.12 level. This is an area that causes quite a bit of support though, as it extends down to the 61.8% Fibonacci retracement level. That obviously will attract a lot of attention, and with the Federal Reserve is likely to cut interest rates during the month of July, it does make sense that the greenback could get hit. If that’s going to be the case then by order flow in the Forex market, the Euro almost has to rally. That being said, we are approaching a support level that should be paid attention to. The 1.12 level should offer support, but if it doesn’t that could be a major inflection point in this pair sending it down to the 1.11 handle.
EUR/USD Forecast Video 17.07.19
Currently, I believe that this market is going to go back and forth between the 1.12 region and the 1.13 region, because we just don’t have anywhere to go. We know that the Federal Reserve is going to cut interest rates but the ECB looks likely to do the same thing relatively soon. All things being equal, this is a pair that will grind sideways as it typically does. It is not until we break out of this 100 PIP range that you can take any move seriously.
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This article was originally posted on FX Empire
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