The Euro initially fell during the trading session on Thursday, showing signs of negativity yet again. However, the 1.13 level should offer significant support. I think that at this point it’s likely that the overall range continues, so therefore I do think that there is a likelihood that the buyers come back in. That being the case, I would like the idea of buying short-term dips. I think the overall choppiness and indecision probably continues to be a mainstay in this market.
Euro to Dollar Forecast Video 08.02.19
The 1.13 level of course has been tested several times, so it’s likely that we will find buyers just below, and I suspect that we continue to see the 1.15 level above offer a significant amount of resistance. Not only is it a large, round, psychologically significant figure, but also the 200 day EMA causing resistance just above there as well. The biggest problem that I see in this pair is that the European Union has a lot of negativity around when it comes to economic figures, but at the same time we have a softening Federal Reserve, creating a bit of a “push pull” effect in this market.
I suspect that by the time Monday rolls around, we should have a nice buying opportunity. However, this would be short-term to say the least, as we have no traction in either direction. If we do break above the 200 day EMA eventually, that should send this market into a stronger uptrend. I believe that the 1.12 level underneath, which coincides nicely with the 61.8% Fibonacci retracement level, is the absolute floor in the downtrend.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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