The Euro went back and forth during the trading session on Wednesday as we wait for the Federal Reserve to release its statement. At that point, the question then becomes whether or not they are “dovish enough” to send this market higher. If they are not, then we could very well drop down to the 1.11 handle. To the upside, the 1.1350 level will probably be resistive. But frankly, with the ECB talking about being dovish during the Tuesday session, one would have to wonder whether or not it wasn’t simply an attempt to front run the Federal Reserve stepping to the soft side.
Euro to Dollar Forecast Video 20.06.19
That being said I believe that we will continue to stay within the range that has shown itself to be important this chart, meaning that the 1.11 level should hold, just as the 1.1350 level should hold as well. I think this is a very balanced the market, and I do believe that we are trying to turn back around, but at this point it’s probably best to leave this market alone and reassess the entire situation. Expect a lot of volatility at the time of announcement, and then eventually some type of stability. It’s where we get that stability that will matter, and quite frankly I am more than comfortable waiting for the daily close to format the next trade. Between now and then, I will be on the sidelines as this will be a very choppy and difficult market. Some days artwork trading, and quite frankly it’s not until we figure out where were going that it’s worth being bothered with. At the levels mentioned previously, I am more than willing to put on a trade because the risk to reward ratio is so heavily skewed in my favor.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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