The Euro has rallied a bit during the trading session on Thursday, bouncing from the 50 day EMA. The market has formed a couple of hammers ahead of this, but it is difficult to read too much into that as it would have been holiday trading. At this point, the market is very noisy, and it will continue to be. The 200 day EMA above is starting to slope lower, while the 50 day EMA is starting to slope higher. This is a very noisy and compressed trading, and as a result I don’t think you’re going to get too much in the way of momentum one way or the other.
Euro to Dollar Forecast Video 27.12.19
The downtrend line above continues to cause issues as well, so I think the short-term rallies will probably rollover. If we do break above the 1.12 level though, then the market is ready to go higher towards the 1.14 level. That being said, I don’t think were ready to do that and I think that this bounce will probably be sold into again. Ultimately, if we do break down below the couple of candlesticks from earlier this week, then we probably go looking towards 1.10 level underneath which has been significant support. All things being equal though, between now and January 6, I anticipate a lot of choppy back-and-forth trading, and therefore it’s not much to look at during these days. That being said though, small back and forth kind of range bound trading is possible. Position sizing is probably going to be the biggest take away here.
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This article was originally posted on FX Empire
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