The Euro has sold off yet again during the trading session on Wednesday as the pain for the Euro simply isn’t going away. Ultimately, the market looks as if it is going to try to slice through the lows of the previous session, and if it does it very well could open up the door down to the 1.08 handle. This market seems to be unable to get out of its own way, and therefore the only thing you can do at this point is sell the Euro further. Rallies at this point should continue to be sold into, because quite frankly it now looks as if the 1.10 level above is massive resistance. Ultimately, I believe that this pair is going to go looking towards the 1.08 level, and then eventually the 1.0750 level as it is a massive gap that hasn’t been filled yet.
Euro to Dollar Forecast Video 13.02.20
If we do rally, then I believe somewhere near the 1.10 level we should see plenty of selling. We could even see plenty of selling at the 1.0950 level, as it is a “midcentury” mark, a place where sometimes you will see significant amounts of selling or buying depending on the trend. Ultimately, this is a market that looks very unlikely to have a significant turnaround anytime soon, especially considering that the European economic figures continue to be very poor. Having said that, Jerome Powell was speaking in front of Congress so part of what we had seen might have been due to noise coming out of that trading situation. All things being equal though, selling is the only thing you should be doing in this market.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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