The Euro initially tried to rally during the trading session on Tuesday but ran into a bit of trouble near the 1.1050 level. That’s the beginning of significant resistance that seems to extend towards the 1.11 EUR level, and with the ECB meeting this week it’s likely that they are going to do something to ease the pressure on the Euro, perhaps sending it much lower at that point. Ultimately, the 50 day EMA is racing towards the 1.11 EUR level, which should now offer a bit of resistance given enough time.
EUR/USD Forecast Video 11.09.19
To the downside we have the 1.10 EUR level that of course will cause quite a bit of attention to be brought to the market as it is such a large, round, psychologically significant figure. Beyond that, we also have the overall downtrend anyway, and the European banks which are essentially zombies at this point. Ultimately, the ECB will do something to be down the value of the currency this week, and while the Federal Reserve is likely to cut rates, they still have to deal with the fact that the bonds in the United States are offering a positive yield something that the Europeans can’t.
With that, this is a market that you should be looking to fade rallies and, as the market participants have been decidedly bearish of this market for quite some time, going back a couple of years. At this point, the safety of the greenback continues to be one of the main drivers of the currency markets in general, strengthening against almost everything else with perhaps the exception of the Japanese yen.
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This article was originally posted on FX Empire
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