The Euro has rallied a bit during the week but has also given back quite a bit of the gains to form a less than impressive candlestick. As we continue to grind sideways it suggests that the market is going to continue to show signs of exhaustion after rallies, and we are most certainly in a very negative trend. Beyond that, the United States has released an extraordinarily strong employment figure, and that has certainly weighed upon the Euro on Friday. At this point, it looks like we are going to continue to chop lower in noisy trading, and longer-term sellers continue to be in the driver seat. With that being the case, I believe it’s only a matter of time before we break down through the 1.10 level and go looking towards the 1.09 level.
EUR/USD Video 09.12.19
If we were to break down below the 1.09 level, then it opens up the possibility of filling the gap down at the 1.0750 level. That’s an area that has not been filled yet, so it would make quite a bit of technical sense to get down there. I don’t have any interest in trying to buy this pair, and I think that recently on the weekly chart we had seen a bit of a “brick wall” at the 1.12 level. At this point it’s obvious that the Euro continues to be sold every time it rallies, and that’s even more clear on the daily charts as well. Granted, it’s not exactly clean action but with the ECB ready to loosen monetary policy and the Federal Reserve on the sidelines, it makes sense that this pair continues lower.
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This article was originally posted on FX Empire
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