The Euro rallied a bit during the trading session on Friday, reaching towards the 1.12 level. That’s an area that of course has been important more than once and is a large, round, psychologically significant figure. Beyond that though, we also have the 50 day EMA slicing through the 50 point range of resistance just above. The 1.1250 level above represents a major barrier to get above. If we do get above there, then it changes a lot of things and the Euro should continue to go much higher. In short though, I think that signs of exhaustion will be sold into, as the market has been so resistant to break above there.
EUR/USD Video 27.05.19
If we do, it would send this market looking towards the 1.1450 level above. It would be a major change in the attitude of the market. To the downside, I believe that the 1.11 handle underneath is massive support. If we break down below there, then the market is very likely to go to the 1.10 level after that. In general, I think that this is a market that is going to move with risk sentiment, which quite frankly isn’t that great right now. I have the lines on the chart representing everywhere I think the market can turn, and quite frankly I don’t see anything changing in this chart in the short term although this has been a very bullish move of the last couple of days.
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This article was originally posted on FX Empire
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