The Euro has gone back and forth during the trading session on Wednesday in early hours to dance around the 1.11 handle. This is an area that looks as if it is going to cause both support and resistance depending on which side of it the market is trading. Right now, it’s likely that we will see a lot of back and forth action in this area, but one would have to think that the action over the previous couple of weeks does in fact suggest there’s probably more downward pressure to be found here. If that’s going to be the case, it’s very likely that rallies will continue to be sold into, and that of course makes quite a bit of sense with the ECB in its loose monetary stance.
Euro to Dollar Forecast Video 07.11.19
The Federal Reserve is on the sidelines now, so that means that the US dollar can strengthen a bit going forward. I don’t necessarily think that we are going to melt down, but I do believe that there is a strong possibility that we will grind lower and try to target the 50 day EMA initially, and then the 1.10 level. Ultimately, I am a seller of this pair until we break out above the 200 day EMA on a daily close at the very least. Look for signs of exhaustion after short-term rallies, and then take advantage of any opportunities you get to pick up US dollars “on the cheap” going forward.
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This article was originally posted on FX Empire
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