The Euro rallied a bit during the beginning of the week, showing an attraction to the 1.12 handle. That’s an area that has offered resistance in the past, and we did in fact break down from there rather significantly. The 1.11 handle is what the market seems to be attracted to, as it is the middle of the range that the market has been trading. The 1.12 level is resistance while the 1.10 level underneath is massive support. Ultimately, the market still looks as if it’s trying to grind lower but if we were to break above the top of the shooting star from the previous week, the Euro will more than likely go much higher.
Euro to Dollar Forecast Video 13.01.20
The 50 week EMA is offering resistance, so that’s something to pay attention to as well. If we do break above the 1.1250 level, it’s very likely that the market will go towards 1.14 handle, which is the 200 week EMA. With all things being equal, this is a market that remains very choppy and noisy, and therefore longer-term traders will need to see a significant break out to start buying. Shorter-term traders have a little bit easier path to the upside, but even at this point one thing you can count on is that the market is going to be extraordinarily choppy. Traders come back to work on Monday from the holidays, now that the Non-Farm Payroll announcement has gotten out of the way. With this, volume should pick up in the first couple of candles of the year could set the town.
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This article was originally posted on FX Empire
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