The Euro broke higher during the trading session in a significant move on Friday. We broke above the 200 day EMA, but at this point we are pressing a certain amount of resistance. The question now is whether or not we can break above the downtrend line, or if we can break above the 1.12 handle? Ultimately, this is a market that I think that will have a lot of questions answer soon, and as we are near the 1.12 handle and significant resistance that has shown itself previously, the question now is what happens next? At this point, if we get a daily close above the 1.12 handle then I am willing to start buying, but one thing that you should keep in mind is that we are heading through the middle of the holidays, so volume will have been a bit of an issue.
EURUSD analysis Video 30.12.19
To the downside, the 50 day EMA will cause a significant amount of support based upon the recent price action, but if we break down below there then we are likely to go to the 1.10 level underneath, which is the bottom of the overall consolidation area that we have been trading in. Ultimately, if we were to break down below the 1.10 level it would continue the longer-term downtrend. I think that between now and when traders come back to work somewhere near January 6, we should see a lot of erratic movements and you can’t read too much into it because of the lack of volume. However, once we get to that point in time, then you can take some of these moves a bit more serious.
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This article was originally posted on FX Empire
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