The Euro slumped slightly during the trading session on Thursday to reach down towards the 1.12 level and even break below it slightly. However, the market has not been able to stay below there for a significant amount of time, so I think we are simply grinding back and forth. Ultimately, I do think that the Euro is going to get a bit heavy, especially considering that the European Union has so many issues when it comes to not only coronavirus infection rates, but also banking, and that pesky “Brexit thing.”
EUR/USD Video 26.06.20
All things being equal though, I believe that if we reach towards 1.14 level which should find sellers that we can take advantage of, as there is significant resistance from the 1.14 level all the way to the 1.15 handle. A break above the 1.15 handle could be a bit of a trend change for a longer-term move, but I just do not see that happening quite yet. The one thing that would be working in favor of that move would be the Federal Reserve, throwing dollars into the market as fast as they can.
To the downside, if we get a significant break down then we will go looking towards the 200 day EMA underneath, near the 1.1050 level, and then possibly dip below there down to the 1.10 level. This is a market that is very choppy, so I would not anticipate that move to happen by any stretch of the imagination unless of course there is a headline but spooks the market or suddenly has people dumping the dollar.
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This article was originally posted on FX Empire
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