The Euro has broken down a bit during the trading session on Friday, reaching towards the 50 day EMA again. If we can break down below there it’s very likely that the market continues to reach towards the 1.10 level, which is the bottom of the overall range that I see the market trading in. I believe that the 1.10 level is the bottom and the 1.12 level is the top. With that in mind, the 1.11 level is essentially “fair value”, and now that we are below it, all things being equal it’s likely that we go down to the 1.10 level.
EUR/USD Video 23.12.19
At this point, it’s likely that the market continues to see a lot of choppiness in volatility, so I think overall this is a market that is going to be noisy to say the least. That’s nothing new though, because the Euro is visited by high-frequency traders on a daily basis. Because of this, it’s very likely that the market will grind overall, and this time year is very likely that the volatility will make it very unlikely to see big moves. There is just simple chop back and forth as volume drops. Ultimately, if we can break down below the 1.10 level, we will continue to see the market reached towards the 1.09 level again which was the most recent low. I have no interest in buying the Euro, at least not until we break above the downtrend line above near the 1.12 handle. If we can break above there, then it’s likely we go to the 1.14 handle.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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