The Euro initially fell during trading on Wednesday but turned around of form a bit of a hammer by the time we got to mid-day trading. Ultimately, when you look at this market you should recognize that we are tightening up, meaning that we don’t really know where were going next. This makes sense considering that the jobs number comes out Friday morning, and that will have a massive effect on what happens to the US dollar next. I believe that the 1.15 level above will continue to be resistance, because quite frankly the jobs figures tend to end up with a choppy session that doesn’t really accomplish much under most circumstances. I would be very surprised if the market managed to break that resistance, but if it did it would obviously be very bullish.
EURUSD analysis Video 07.12.18
Underneath, I see a lot of support, and especially at the 1.11 handle. If we were to break down below there it would be very negative for the Euro, but I think at this point it makes a lot of sense to assume that we stay within the trading range that we have been in for some time. I suspect by the end of the day nothing will have changed, and we will simply be looking at more of a grind. Obviously though, if we manage to break out of this range that could lead to much more longer-term trades, and perhaps some clarity that is desperately needed in this pair.
This article was originally posted on FX Empire
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