The Euro rallied towards the 1.18 level above before pulling back early in the trading session. Ultimately, if we can break above the 1.18 level then we will more than likely go looking towards the 1.19 level next as it is major resistance. Ultimately, this is a market that I think that they will continue to see a lot of back and forth, as we are trying to figure out the ability for the Euro to continue to go higher. All things being equal it is likely to be the case that we can go higher but if we were to break down below the 1.17 level then perhaps the Euro will go looking towards the 1.15 level underneath, which is massive support.
EUR/USD Video 12.08.20
Looking at the chart, we are obviously in an uptrend so it is only a matter of time before we see buyers come back in from what I can see. The question now is whether or not we continue to go sideways or if we have to pull back in order to find value. Obviously, we cannot be selling this pair because of the strength of the Euro that we have seen as of late. Ultimately, this is a market that I think continues to see buyers eventually, so as the Federal Reserve pumps greenbacks into the economy, that will continue to drive the value of the dollar down. Ultimately though, at the very least it looks like we are trying to digest gains.
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This article was originally posted on FX Empire
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