The Euro initially tried to rally during the Friday session, reaching towards the 1.1075 handle, before rolling over yet again. The 50 day EMA above is a negative influence on the market, as it has been very resistive several times recently. At this point, the market is very likely to continue to drift towards the bottom again, which is closer to the 1.09 level. That is the area where we had bounced from a couple of times, and it looks as if we are ready to continue to go much lower, perhaps reaching towards the 100% Fibonacci retracement level, closer to the 1.0450 region.
EUR/USD Video 23.09.19
If we did break to the upside though, there are a couple of other areas that sellers will probably jump in and push this market to the downside. The 1.12 level above is an area that had been resistance in the past, and then of course the 200 day EMA which is painted in black on the chart is also a major negative influence. It’s not until we break above there that I would be convinced that you can buy the Euro with any type of confidence. We have been in a long-term downtrend for several years, and although it has been very messy, the grind lower has been absolutely relentless. Short-term rallies continue to offer plenty of selling opportunities as we have seen over the last couple of days. That should continue to be the way traders approach this market.
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This article was originally posted on FX Empire
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