The Euro initially tried to rally during the trading session on Friday but gave back quite a bit of the gains to crash back into the 1.1250 level. That’s an area that extends down to the 1.12 level and offers a significant amount of support. Beyond that we have the 50 day EMA turning higher in that area, so it looks likely that we should find buyers underneath that will try to take advantage of the market being a bit cheap.
EUR/USD Video 17.06.19
Beyond that, you can see that there is a “W pattern” on the chart, showing that perhaps we were trying to change the overall trend. I believe this is probably the case mainly because what we are going to see due to the fact that the Federal Reserve has stepped away from its hawkish monetary policy. With that being the case, it makes sense that the US dollar would soften a bit.
I don’t necessarily believe that this market is about the Euro right now, I think it’s more about the US dollar. With all of that in the back of my mind it’s hard to imagine a scenario where I going to be looking to sell this market in the short term. This doesn’t mean that we will be able to shoot straight up in the air but I think that what we are looking at a market that certainly favors the upside. We could grind towards the 1.1450 level, which is significant in its own right, that extends to the 1.15 handle. I do believe that’s where we are going this summer.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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