The Euro initially tried to rally during the trading session on Wednesday but found enough resistance above the 1.12 level to turn things over and start selling off again. That being the case it’s very likely that the market is going to continue to struggle and perhaps drift a bit lower. At this point, it’s very likely that the market will probably try to reach down towards the 1.1150 area. After that, it’s very likely that we go to the 1.11 handle which was the most recent lows.
Euro to Dollar Forecast Video 16.05.19
Rallies at this point should continue to offer selling opportunities, unless of course we can break above the shooting star from the Monday session, which was the last swing high. A break above that level could then reached the market towards the 1.1325 handle, and then perhaps even the 1.14 level given enough time. At this point, it’s more likely that we break down than up, but one would have to realize that a break above the top of the shooting star would be an extraordinarily bullish sign.
A break down below the 1.11 handle opens the door to the 1.10 level, which is an area that could be crucial for the market as it is a large come around, psychologically significant figure, and of course an area that has been important on the longer-term charts. Ultimately, I think that will be the bottom if we reach that level, barring some type of extraordinarily negative financial event on a global scale. The European Union is trying to bottom out, but we aren’t quite there yet.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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