The Euro initially tried to rally during the trading session on Friday, but the market pulled back towards the 1.1075 level, an area that had previously been resistance as well as support. At this point, the market is still very much in a downtrend and with the jobs situation in the United States going so strong, it should continue to be the case. At this point, the markets continue to struggle every time they get close to the 200 day EMA, something that seems very unlikely to be broken at this point. A breakdown below the 1.1075 level opens up the door down to the 1.10 level underneath. Breaking below that level then opens up the door to the lows at the 1.09 handle.
EUR/USD Video 09.12.19
Underneath there we have a massive gap at the 1.0750 level, an area that has yet to be filled so I think it is a longer-term target. Having said that, it is probably going to take quite some time to get down there so I anticipate that we will get more of the so-called “zigzag pattern” on the way down. It’s likely that the Euro will continue to struggle not only because of poor economics in the European Union, but the uncertainty of the final effect of Brexit, and of course the fact that the European Central Bank is likely to continue loosening monetary policy going into the future. I remain bearish but I also recognize that this is a market that is choppy to say the least.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Crude Oil Price Forecast – Crude Oil Markets Rally Into The Weekend
- Gold Price Forecast – The Final Breakdown
- USD/JPY Price Forecast – US Dollar Recovers Against Yen
- USD/JPY Weekly Price Forecast – US Dollar Continues To Grind Sideways
- GBP/JPY Weekly Price Forecast – British Pound Breaks Out
- S&P 500 Price Forecast – Stock Markets Rocket Higher After The Jobs Figure