The Euro rallied a bit during the trading session on Friday, using the 1.15 level as support. I think at this point it’s likely that we will continue to see a lot of back-and-forth trading, and choppiness in general. That makes sense, because we have so much in the way of conflicting opinions. The 200 day EMA just above is going to offer significant resistance, as it is a major technical level. Beyond that though, we have some reasons to keep this market very choppy. In the United States, the Federal Reserve is starting to waffle a bit on the idea of raising interest rates, and that of course will put some bullish pressure in this market.
EUR/USD Video 14.01.19
However, in the European Union the ECB is set to stop buying assets, and therefore it’s likely that the Euro will have a bit of bullish pressure attached to it. However though, there are a lot of economic concerns in the EU, so that puts downward pressure on this market. I think that the next couple of days are going to be very noisy, so therefore I think that the market breaking above the highs of the last couple of days could be a buying opportunity, just as a break down below the 1.15 level could be a short-term selling opportunity. However though, I think that the market has just formed a “rounded bottom”, and therefore it’s a bullish sign. I don’t think it’s going to be a huge move but a grind higher is likely to happen.
This article was originally posted on FX Empire
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