The Euro has been relatively quiet during the day on Monday, as we continue to see a lot of choppiness at the top of a huge move. The market has gone somewhat parabolic as of late and is now starting to approach the crucial 200-day EMA. That of course will attract a lot of attention, and therefore it would not surprise me at all to see this market give back some of the gains. Quite frankly, the market has been a bit overdone for a couple of days now, so at the very least it probably needs to take a bit of a break.
EUR USD Forecast Video 22.10.19
Looking at this chart, the 200-day EMA is also starting across the 61.8% Fibonacci retracement level, an area that should attract a lot of attention as well. That being said, I am not a huge fan of trying to jump in and just start selling immediately. I would need to see a breakdown below the 1.1150 level on a daily close to be comfortable enough to start shorting. The target of course could be the last couple of days being taken out, meaning that we could go down to the 1.1050 level. All things being equal, the market is still very much in a downtrend and has not done anything out of the ordinary. If you look back roughly 18 months, you will see that several times we have seen a balance significantly through the 50-day EMA only to fail just below the 200-day EMA. So far, this hasn’t been anything different.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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