The Euro has broken the trend line again during the trading session on Friday, breaking above the 50 day EMA again. Ultimately, this is a good sign and it looks as if the Euro is ready to go higher. That being said, the 1.10 level should offer a bit of support now, and if it does not then the market is probably going to continue the overall downtrend. There seems to be a lot of skittish trading out there right now, which of course makes quite a bit of sense considering that the Brexit situation seems to be moving forward a little bit and that of course will help the European Union, not just the United Kingdom.
EUR/USD Video 14.10.19
Beyond that, there’s also potential good news coming out of the US/China talks, and while a bit counterintuitive, there is a lot of talk about how China’s strengthening will only help the European Union as well, because the EU is its largest customer. I don’t know if I buy into that but the reality is the markets seem to think that so at the end of the day that’s all that matters. The 1.1075 level above should continue to offer a bit of resistance, but if the market breaks above the 1.11 handle it’s likely that we will get a run to the upside. Otherwise, expect a lot of choppy and sideways action going forward. Quite frankly though, it’s only going to take a bad headline or two to send things around to the downside again.
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This article was originally posted on FX Empire
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