The Euro has rallied a bit during the trading session on Friday, in a bit of short covering. After all, the weekend is coming in most people will be more than happy with over 100 point gain in shorting the Euro of all currencies. This is a pair that doesn’t typically move that well, so the fact that we have made such a significant drop shows just how volatile it is. If the market does rally from here, it’s very likely that the market will run into a lot of issues at the 1.09 level. Furthermore, the 1.10 level should also be resistance. I’m looking for a simple sign of exhaustion after a rally to take advantage of.
EUR/USD Video 17.02.20
When you look at the longer-term chart, the 1.0750 level underneath offers quite a bit of interest due to the fact that there was a gap on longer-term charts that have yet to be feel. At this point, I think that the market will get there but it won’t get there immediately. I like the idea of shorting signs of exhaustion as not only does the Euro have its own issues, the US dollar represents the US economy, which of course is without a doubt the strongest one out there. That being said, we are oversold so this bounce makes quite a bit of sense, especially considering that the weekend is coming in the last thing people want to do is wake up on Monday to a major gap against them.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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