The Euro went back and forth during trading on Tuesday, as we continue to see a lot of choppiness. The 1.12 level has offered support, just as the 100.1250 level has offered resistance. Ultimately, this is a market that seems to be range bound, but one thing that can’t be ignored is the fact that the 50 day EMA has been great dynamic resistance of the last couple of months. It’s a very technically driven marketplace, and it suggests to me that we are probably going to see significant selling going forward.
EUR/USD Forecast Video 15.05.19
If we break down below the 1.12 level, that opens the door to a potential move at 1.11 which has been supportive. That being the case, we could get a move down to the 1.10 level as well, as it would just be a continuation of the downward pressure that we had seen. To the upside though, if we were to break out the 1.1325 level should be resistance and breaking above there could open the door to the 1.14 handle. However, that is probably the least likely of scenarios as this market has been in a downtrend all year.
With the Germans reporting poor economic numbers early in the day, that doesn’t help the case for the Euro either. If we get some type of global negativity, the market will probably go looking towards the US dollar for safety. After the last couple of days we have seen the lot of negativity, and therefore that has driven demand for the greenback higher as well.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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