The Euro initially fell on Wednesday but then turned around to show signs of life again. The 1.15 level above continues to be an area of importance that I think it extends to the 200 day EMA, pictured in black on the chart. Because of this, it’s going to take a little bit of effort to break out from here but it does look as if the Euro is trying to form a so-called “rounded bottom.” A break above the 200 day EMA would confirm this and send the markets much higher. At that point, I would anticipate that the market probably goes looking towards the 1.18 level above.
Euro to Dollar Forecast Video 10.01.19
It’s not even necessarily that I love the Euro, it’s more like the US dollar is finally showing signs of weakness because of the words of Jerome Powell suggested that perhaps the Federal Reserve wasn’t “on autopilot” when it comes to interest rate hikes. If that’s the case, we could very well see the US dollar softened overtime. I think looking at this chart, you have to look at short-term pullbacks as buying opportunities as we banged against the 1.15 level repeatedly. Eventually, the resistance will give way and we should rally from there. I think there is support underneath that continues to be very stringent, probably closer to the 1.1350 level now, assuming that we can even get back down to that level. I’d be patient, but a daily close above the 200 day EMA would have me going long of this pair. In the meantime, you could do short-term pullbacks for small trades.
This article was originally posted on FX Empire
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