The Euro rallied a bit during the trading session on Monday, reaching above the 1.1250 level, and breaking above the 50 day EMA during the US trading session. However, there is a lot of resistance built into the area that we are currently trading at, so I would expect quite a bit of noise in this area. That being said, I believe that the Euro will probably struggle to get above the 1.13 level, so if we start to see weakness I suspect that the sellers will come in and start jumping all over it. That doesn’t necessarily mean that we are going to melt down, it’s just a simple continuation of the overall downtrend that we have been in.
EUR USD Forecast Video 14.05.19
The US dollar has been all over the place as the Chinese have announced that they are going to increased tariffs. By doing so, it’s very likely that we are going to continue to see a lot of volatility in the FX markets as well as bonds and stock markets, so don’t be surprised at all if you get whipped around. This is a pair that is typically choppy anyway, so it will only exacerbate the situation or if we can break above the 1.1325 handle, then I think we are free to go towards the 1.15 level above. On the other side of the equation, if we break down below the 1.12 level, it’s very likely that we go down to the 1.11 and will again. Short-term trading is about as good as this pair gets.
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This article was originally posted on FX Empire
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