Even though the Euro has formed a very strong candle stick for the week, I suspect that we may have trouble breaking through and continuing the move. While it does technically looks out, what you don’t see on the weekly chart is the fact that three candlesticks in a row formed what look like shooting stars on the daily time frame. Because of this, it makes sense that we will continue to see a bit of pressure above, and I think we may make a move towards the 1.11 EUR level rather soon. The question of course is whether or not we can break out to the upside after that?
EUR USD Forecast Video 12.08.19
If we do break above the 1.13 level then I think it gives us a little bit more clarity to the upside. That could send this market towards 1.14 handle and then eventually the 1.15 handle. However, to the downside if we were to break down below the 1.10 level it could have this market breaking down towards much lower levels, possibly as low as 1.05 handle.
There are a lot of moving pieces right now around the world, and the fact that the Federal Reserve is cutting rates doesn’t elude me. Having said that though, we also have negative interest rates in places like Germany and France, and of course those economies are very likely entering recession. We have a mess here, but it’s obvious that we have volatility more than anything else. At this point, it’s probably easier to trade this pair off the daily time frame.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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