The Euro initially fell during the week, reaching down towards the 1.11 handle. This is a market that has found plenty of support, which is very interesting considering that it’s an area where we had seen the market take our previously. With that in mind, and the fact that we have formed a hammer, I suspect that we will try to make a run higher. That being said, it’s not until we break above the 1.1250 level that we can take a move higher seriously.
EUR USD Forecast Video 27.05.19
That being said, if you are shorter term trader you probably will continue to go back and forth between the 1.1250 level and the 1.11 level. Until we break out of this range though, it’s going to be difficult to place a trade for any significant length of time. This is essentially a short-term traders type of market but I also recognize that we are trying to form a bottom. If we were to break through the 1.1250 level, then the market could go as high as the 1.1450 level or even the 1.15 handle. If we can break above there down the road, that would be the beginning of an uptrend in this market that should last quite some time.
On a break down, the market will then go looking towards the 1.10 level for support. If that fails, then we could see a bit of a “flush” in the Euro going forward in a bit of panic. In general, it looks as if we are trying to stabilize.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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