The Euro initially tried to rally during the trading session on Tuesday but found the 200 day EMA to be a bit too restrictive to reach to the upside for any significant amount of distance. We also broke down but haven’t necessarily broken any support levels either. The 1.11 handle it seems to be a bit of a magnet for price as it is essentially “fair value”, as the 1.10 level underneath has been massive support, while the 1.12 level above has been massive resistance. At this point, the market looks to be stuck, as traders find this area to be a bit of a magnet.
EUR/USD Forecast Video 15.01.20
If we break above the 200 day EMA, then it’s likely we go looking towards 1.12 handle. However, if we break down below the 50 day EMA, then it’s likely that the market goes looking towards 1.10 level. Until then, it will be the usual choppiness that you see in the EUR/USD pair, as it is so heavily driven by high-frequency algorithmic trading. If you are looking for any type of real estate on a trade that you have running, this is not going to be the market for you. This is especially true right now, because we are not up against any major support or resistance that could turn the market around as well. That being said, those levels being broken would of course bring in more momentum and follow through on a trade, but I’m don’t see that happening anytime soon. At this point, the market seems to be lacking any significant momentum and therefore is probably better off left alone.
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This article was originally posted on FX Empire
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