The Euro has broken below the 1.10 level during the trading session on Friday but has also bounce again to show signs of life. Ultimately, this is a market that of course will pay attention to these large figures, and this is an area where we have seen a lot of support as of late. Ultimately, this is a market that is very negative though, and at this point it’s very likely that rallies will continue to be faded. The 50 day EMA above should continue to offer resistance, but even if we break above there it’s likely that we will continue to see sellers above, especially the 1.11 handle, and the 200 day EMA which recently caused a “double top” in this pair.
EUR/USD Video 02.12.19
Beyond that, the economic figures in the European Union are mixed at best, suggesting that the ECB will more than likely continue to be loose with its monetary policy, so I think at this point in time it’s only a matter of whether or not they will continue to loosen monetary policy. At this point, the 1.09 level would be an obvious target, and then potentially the 1.0750 level as there is a huge gap there. I think we continue to see a lot of choppy behavior here, but it does look as if there is a significant fight here at the 1.10 level, as the Euro bulls try to make a stand. That being said, I would anticipate the Christine Lagarde will become very loose with monetary policy going forward. All things being equal, it’s more of a grind lower than anything else.
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This article was originally posted on FX Empire
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