The Euro has initially tried to rally during the trading session on Tuesday but then fell rather hard. By doing so, the market has formed a very ugly looking candle stick, as we reach towards the 1.12 level underneath. I think there is plenty of support there, that not only is based upon the large, round, psychologically significant figure, but also based upon the wicks that I see from the last couple of attempts to break down. I think this support is about 50 pips, so if we were to break down below the 1.1150 level, the market probably starts to fall rather significantly from that point and goes looking towards 1.10 level.
EUR/USD Forecast Video 24.04.19
At this point, it does look as if the support is going to be tested rather stringently, and it would take a very brave soul to start buying. In fact, I would need to see the top of the candle stick from Tuesday taken out, at roughly 1.1250, to the upside in order to start considering Long’s at this point. The US dollar has been strengthening for quite some time, and now it looks like we are trying to finally break it down. However, let the market tell you what it’s going to do initially, and then you can follow. Trying to anticipate a trade in one direction or the other invokes Murphy’s Law, meaning that no matter what you do, the markets going to do the exact opposite. As seems to be the way trading works, doesn’t it?
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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