Although the Euro looks very difficult to handle right now, the reality is that we are still within the parameters of the major consolidation area that has been so important as of late. With that in mind, I don’t anticipate much further to the downside even though Germany look soft. The 1.1250 level should attract certain amount of buying as it is a demand zone, although I’m the first to admit that the last couple of candles have made it very unpalatable to take that trade. Regardless, I suspect that it is only a matter of time before we get some type of value hunting or buying in this area. I recognize that although it has been a brutal couple of sessions, in the end structurally nothing has changed in the markets. With that being the case, I like the idea of buying this dip, at the first signs of stability.
EUR/USD Video 25.03.19
However, if we did break down below the 1.12 handle, that would be a very negative sign as there is so much importance placed upon that on the longer-term charts, and of course it’s an area that’s obvious enough that almost everybody in the world recognizes it. If we did break down below there, we could open the door to the 1.10 level but there is a lot of structural support there on longer-term charts as well, so I think it would take a significant amount of momentum to make that happen. Ultimately, this is a market that I think is susceptible to a lot of chopped, so short-term trading is probably preferable.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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