The Euro has rallied a bit during the trading session on Wednesday, as the 1.17 level continues to be important. Ultimately, the market is likely to see plenty of buyers on dips, and the only question I have is whether or not the 1.17 level can hold. If it does not, then we could go down to the 1.15 handle. That is an area that I believe is massive support and needs to be held in order for the uptrend to stay alive. There is a lot of noise out there, but the massive move that has happened over the last couple of months certainly looks as if the market is ready to continue going higher, so it is something that should be paid close attention to.
EUR/USD Video 13.08.20
The question now is whether or not we can grind away enough time to get people used to the idea of the Euro being all the way up here, and therefore comfortable with being long in general. The 1.20 level will be targeted, followed by the 1.25 level longer-term. Do not get me wrong, it is going to take a long time to get there but I do think eventually that happens. However, if we were to break down below the 1.15 level on a daily chart, that could send this market much lower, because it would be a complete reversal of everything that we have built over the last couple of months. Regardless, with the Federal Reserve out there flooding the market with greenbacks, I think it is only a matter of time before we see the US dollar lose strength against almost everything.
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This article was originally posted on FX Empire
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