The Euro got absolutely hammered during the trading session on Thursday as fear enter the market yet again. At this point, it’s actually not easy to determine exactly what set everybody off, but one would probably suspect that the usual areas of blame would be pointed out, and other words the trade war between the United States and China. Quite frankly, I think there’s a lot more going on than that, so ultimately this market is a representation of what the US dollar is doing.
EURUSD analysis Video 24.05.19
Looking at this chart, the 1.11 level is significant support, and it most certainly will be tested during the trading session. If we can break below there on a daily close, then it opens up the door to the 1.10 level. However, this level isn’t necessarily going to be easy to break through. At this point in time I think it’s only a matter time before buyers return. However, we need to pay attention to the way that that the daily candle forms. A bounce from here probably has the market looking towards 1.1150 level, so in other words this is a market that quite frankly isn’t worth trading. It’s very tight, as it typically is and is probably one of the least profitable markets to trade, despite what your broker will tell you. Tight spreads don’t make the difference unless of course you are a scalper. If you are a scalper, then you will be paying attention to the 1.11 level very intently as it could offer a small bounce.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- S&P 500 Price Forecast – Stock markets get hammered
- GBP/USD Price Forecast – British pound trying to find legs again
- USD/JPY Price Forecast – US dollar continues to pull back
- Gold Price Forecast -Gold markets rally significantly on Thursday
- EUR/USD Price Forecast – Euro gets hammered
- E-mini S&P 500 Index (ES) Futures Technical Analysis – Swing Chart Points to 2732.50 by May 29