The Euro initially tried to rally during the trading session on Thursday, but as you can see struggled mightily to keep the gains and turned around to show that the 1.11 level will continue to cause major issues as far as resistance is concerned. Ultimately, this is a market that has been in a downtrend for some time so it makes sense that we would continue that overall malaise. Every time the market has rallied over the last 18 months or so, there has been a significant pullback and it looks as if that might be what we are getting ready to see right here.
EURUSD analysis Video 08.11.19
The 200 day moving average has caused a bit of a short-term “double top” that people will be paying attention to as it is a very negative sign indeed. The 50 day EMA is sitting just below so that could offer a bit of short-term support, but ultimately that is probably minor to say the least. All things being equal it’s very likely that we continue to see more of a grind lower than a meltdown, and it looks likely that the 1.10 level will be a target for most traders. Ultimately, fading rallies has worked for almost 3 years and there’s no sign of it changing anytime soon. With that being the case, simple patience and waiting on signs of exhaustion will be the best way to trade this market, picking up the US dollar “on the cheap.” I have no interest in buying the Euro, it is mired in a downtrend and has been for ages.
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This article was originally posted on FX Empire
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