The Euro rallied a bit during the week, reaching towards the 1.1250 level. This is an area that has been important more than once, so it makes quite a bit of sense that we would see a bit of selling pressure there. That being the case, if we can break above that level on a daily close, then it’s likely that we can go towards the 1.13 level, and then the 1.14 level. That being said, we are in a downtrend so it’s probably easier for this pair to break down.
EUR USD Forecast Video 13.05.19
Longer-term, I believe that we are trying to form some type of bottoming this market, but this is almost always a messy affair. Overall, I believe that the market is going to focus on the US/China trade talks more than anything else, just as other pairs have been doing. If we get bad news, that probably sends this market lower, but on the other hand if we get good news out of the negotiations, that probably sends the Euro higher as it should help the overall attitude of the market and more of a “risk on” attitude.
The one thing you can probably count on is a lot of volatility, but I think this market is still easier to trade from a shorter-term standpoint, as it doesn’t have much of a range most weeks. All things being equal though, all we need is a little bit of good news as the European economy looks like it is trying to form a bit of a base as well.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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