The Euro has broken out to the upside during the trading session on Wednesday, slicing through the 200 day EMA. Not only did they slice through the 200 day EMA, they also sent the Euro above the couple of longer wicks from the previous two sessions. This means that we will probably go looking towards the resistance barrier above in the form of the 1.12 handle, which of course is a large, round, psychologically significant figure. That of course is an area that has been massive resistance extending to the 1.1250 level above. If the market can break above there, then it becomes a longer-term trend change.
Euro to Dollar Forecast Video 16.01.20
Looking at this chart, it has been forming “higher lows”, so that of course makes sense that we continue to attract buyers. Don’t be wrong, I don’t think that this is going to be an easy trade to take, but it’s obvious that the market is trying to build up enough pressure to finally break out. This is the same thing that we are seen across several pairs of the moment, especially when you look at the AUD/USD pair, which is almost a mirror image but perhaps has a bit of a head start on the Euro. This being the case, I still like the idea of going long the Aussie much more than the Euro as there is so much noise over here. In the short term though, it’s very likely that we go looking towards the 1.12 handle.
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This article was originally posted on FX Empire
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