The Euro has rallied a bit during the trading session on Friday, as we have reached towards the gap on the weekly timeframe, and therefore you would expect a certain amount of support. However, the market looks very likely to bounce from that as you would expect, but we are still very negative in general. It will be interesting to see whether or not the market can reach towards the 1.09 level, an area where I expect to see more sellers jump been. Furthermore, I believe that the 1.10 level will also be an area that could cause major issues.
EUR/USD Video 24.02.20
That being said, the Euro is oversold so I don’t necessarily want to jump in right here, I think letting the market bounce a bit to give you a bit of value in the greenback is probably the best way to go. If we were to break above the 1.10 level, then of course we have to re-look at the market. That being said, it’s difficult to get bullish about the Euro right now because quite frankly the European Union looks horrible from an economic standpoint.
With that in mind, and the fact that the United States continues to strengthen a bit, it’s likely that the money will continue to flow from right to left when looking at the Atlantic Ocean. That being said, my plan right now is to simply let the market rally a bit so I can short the first signs of exhaustion above. If we do break down below the 1.07 level, we then probably go down to the 1.05 level in what would be an extraordinarily negative move.
This article was originally posted on FX Empire
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