The Euro continues to try to break above the 1.12 level in order to take out the massive resistance above. I believe that the resistance extends to the 1.13 level though, and of course having the 50 day EMA slicing through the candlesticks doesn’t help the situation for buyers as well. I think that the market continues to struggle in this area and will eventually exhaust itself. As we head into the weekend, we could very well see a bit of profit taking as well, so it wouldn’t be surprising to see this market close sob 1.12 level as well.
EUR/USD Video 12.08.19
Looking at this chart, it’s very likely that we are going to go down to the 1.11 handle, which of course is an area that we have seen a lot of support from. I think at this point we are simply looking at a couple of central banks that are trying to ease monetary policy fighting. Ultimately, this is a fight between a couple of lightweights, so it makes sense that we continue to go back and forth. Ultimately, I think that the US dollar will probably strengthen though, even though it longer term I’m looking for some type of bottoming pattern, in the meantime though, I think that the market will continue to be very noisy, so that’s not a huge surprise.
That being said, if we can break above the 1.13 level, then it’s likely that we will continue to go higher. Ultimately, if we were to break down below the 1.10 level, then the market will almost certainly unwind drastically.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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