The Euro has gone back and forth during the trading session on Friday, as we are hanging around the 50 day EMA. The market has been attracted to the 1.11 level like a magnet, as it is the middle of the range that we have been in. The 1.12 level above is the resistance barrier, while the 1.10 level underneath is the massive support level. Ultimately, the market is essentially hanging out at the “fair value level”, which is where the market seems to be the most comfortable. All things being equal, this is a market that I think continues to be difficult to trade but the fact that we are stabilizing right around here does at least give some credence to the idea that we are trying to hang on to the “higher lows.” The Euro has looked at as if it is trying to change the trend, and at the end of the day on Friday it looks as if we are still trying to hang on to what we have been doing for the last several months.
EUR/USD Video 13.01.20
The 200 day EMA is just above, and if we can break above that level it’s likely that the market could go much higher. A break above that level should open up the door to the 1.12 handle again, and if we can break above the 1.1250 level it’s likely that the market could go to the 1.14 handle. Alternately, if we break down below the 1.1075 level, then the market is going to go looking towards 1.10 level before it breaks down even further.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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