The Euro has initially dipped during the Tuesday session, only to find buyers at the 50 day EMA as we continue to press the 1.11 handle. That’s an area that is essentially “fair value” and the middle of the overall consolidation that we have seen between the 1.10 level on the bottom and the 1.12 level on the top. Ultimately though, this is a market that has been in a longer-term downtrend, so I still feel much better shorting this market than buying it. That doesn’t mean that you can’t do both, but in the end, I believe that larger positions are probably likely to be put on to the downside, with smaller positions to the upside. At the 1.11 level though, this is essentially the “fair value” level, meaning that both buyers and sellers are equal in their pressure.
EUR/USD Forecast Video 26.12.19
At the upside, the 200 day EMA continues to offer resistance, and of course the downtrend line will come into play as well. The European Central Bank is likely to be loose with monetary policy going into 2020, and I do think there is still room to the downside when it comes down to the longer-term trend. That doesn’t mean that we get there right away, and quite frankly that’s typical for the Euro as it tends to chop around in general. If we can break down below the 1.10 level, the market is likely to go down towards the 1.09 level.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Crude Comfortable at $61 Level
- Oil Price Fundamental Daily Forecast – Edge Higher Amid Support for Supply Cuts, Lower Weekly Supply Forecast
- Silver Price Forecast – Silver Markets Continue Bullish Run
- Crude Oil Price Forecast – Crude Oil Markets Rally Significantly
- EUR/USD Price Forecast – The Euro Looking For Support
- Silver Climbs to 6-Week High on Soft U.S. Data