The Euro rallied during most of the session on Tuesday but found enough trouble above the 1.14 level to see sellers step back in and try to keep the market contained. This makes sense, there are a lot of concerns out there when it comes to the European Union. There are troubles in the Italian debt markets, riots in France, and quite frankly fairly soft looking economic figures. On the other side of the Atlantic Ocean, you have the United States which is going fairly well, and although the Federal Reserve is starting to show some flexibility, it is still expected to raise interest rates at least a couple of times.
EUR/USD Forecast Video 05.12.18
I believe that between the 1.14 and the 1.15 level above, there is a massive amount of resistance that should keep the market back down. I believe that signs of exhaustion will be what we are looking for to start shorting again, but I don’t think that the moves will be huge. Quite frankly I think that this is a market that you are looking to trade in short-term intervals, not anything major. If we did break above the 1.15 handle, then of course that would change a lot of things, perhaps opening the door to the 1.16 level, then possibly the 1.18 level after that. On the downside, I see a lot of support at the 1.13 level, and then the 1.11 handle. I think at this point you are probably going to be better off trading the 15 minute charts than the daily chart.
This article was originally posted on FX Empire
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