The Euro initially pulled back during the trading session on Wednesday, but then broke above the 1.11 level during the day. At this point it looks like we will probably try to continue to go higher, perhaps reaching towards the 200 day EMA before it’s all said and done. That being said though, we are struggling to sustain the upward momentum, so this tells me yet again that it’s probably time to look for signs of exhaustion to start shorting this pair. We have been in a downtrend for quite some time, and quite frankly Europe isn’t exactly the most reliable economy at the moment.
Euro to Dollar Forecast Video 05.12.19
That being said, treasury markets will of course get a bit of a bit, and that requires US dollar so although it’s a bit counterintuitive, it’s possible that we see this market drop back towards the 1.10 level if we can break down below the lows of the day. I think this is going to continue to chop back and forth as per usual, which shouldn’t be much of a surprise when it comes to this pair as its almost a given. Ultimately, I think that this market continues to be very noisy, and choppy between the 1.12 level on the top of the 1.10 level on the bottom. Longer term though, I think we go looking towards the 1.09 level and then eventually the 1.0750 level which features a major gap. It will not be a clean move regardless of what happens next, as this pair hardly ever makes those. All one has to do is look at the last couple of years to see how difficult that will be.
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This article was originally posted on FX Empire
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