The Euro has rallied a bit during the trading session on Monday, but really hasn’t been overly impressive. It looks as if we are still trying to figure out where we are going to go next, so I will use the moving averages that we are trading between as a bit of a proxy. If we can break above the top of the candlestick from the Monday session and more importantly the 200 day EMA, then I think that the market will go looking towards the 1.12 level, followed by the 1.125 level. If we can break above there, then I believe the trend will have changed.
EUR USD Forecast Video 14.01.20
On the other hand, if we were to break down below the 50 day EMA, then the market is likely to go looking towards the 1.10 level underneath. That is a large, round, psychologically significant figure that will more than likely come into play and support the market. I think that the Euro will continue to chop around simply because nobody really knows what to do next. Eventually, volume will come back into the market and make a larger push so by using the moving averages as a bit of a measuring stick, you can place your next trade. I would not expect massive moves though, that’s not in the DNA of the Euro without some type of major shock. Ultimately, this is a market that will continue to be very choppy and short-term related, even if we do get a breakout of the moving averages that I have mentioned in this article.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- EUR/USD Price Forecast – Euro Continues To Bounce Around
- S&P 500 Price Forecast – Stock Market Continues To Grind Higher
- Global Markets Move Higher, Geopolitical Risk Is Rising, Earnings Season Begins
- E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 9053.25, Weakens Under 8966.25
- Silver Price Forecast – Silver Markets Pull Back
- Gold Price Forecast – Gold Markets Pullback