The Euro fell initially during the trading session on Wednesday but found buyers underneath to cause a bit of a bounce. Ultimately, this is a market that is going to be very noisy in general, so I think it is only a matter of time before we get movement in both directions. Ultimately, this is a market that I will find plenty of resistance above so I think it is only a matter of time before signs of exhaustion are jumped upon as people will look at the US dollar as being cheap.
EUR/USD Video 02.07.20
If we break down below the lows of the last couple of sessions, that should send this market down to the 1.1050 level underneath which is near the 200 day EMA. All things being equal, the market is likely to see a lot of noise in general so if that is going to be the case, then typically favors safety more than anything else so that is another reason why think that the US dollar might get a bit of a bid.
If the markets continue to see a lot of concern out there that will weigh upon the Euro. On the other hand, if we get some type of “risk on” type of major rally, then that could send this market looking towards the 1.14 level above again, which is the beginning of massive resistance extending all the way to the 1.15 handle. At this point, there is a lot of noise between here and there to chew through even get to that point.
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This article was originally posted on FX Empire
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