The Euro rallied a bit during the trading session on Monday, reaching towards the top of the candle stick from the previous session. At this point in time though I think there is plenty of resistance above that will continue to cause issues, so therefore I anticipate that the market will probably run into a lot of barriers. The 1.11 EUR level continues to be massive resistance, and I think that the 50 day EMA running towards that level will continue to cause some issues. With that being the case, I think it’s very unlikely that we go much higher, and I will be looking for signs of exhaustion to take advantage of.
EUR USD Forecast Video 10.09.19
At this point in time, I believe that signs of exhaustion will be taken advantage of as it is with the trend. At this point in time it’s very likely that the downtrend will reassert itself as Germany is heading into recession, and of course European bonds continue to offer negative yields. Ultimately, this is a market that has been in a downtrend for quite some reason, and it’s very likely that the ECB will do or say something this week to try to drive down the value of the Euro as debt is becoming a major issue in that region. Beyond that, there’s that whole “Brexit” thing that you probably have heard of for three years at nausea. That of course is still a mess, and not getting any better from what I can see. Quite frankly, the US dollar is probably going to win by default.
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This article was originally posted on FX Empire
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