The Euro has gone back and forth during the trading session on Thursday, as we dance around the 1.10 level. This is an area that will continue to cause a significant amount of interest in the marketplace as it was previous resistance, and now is shown itself to be supportive again. Furthermore, it is a large, round, psychologically significant figure so that of course attracts a lot of attention in and of itself.
EURUSD analysis Video 15.11.19
Looking at the chart, it’s easy to see that we have been in a downtrend for quite some time, as we have initially tried to rally but formed a larger “M pattern” just below the 200 day EMA. Looking at the chart you can also see that every time we have tried to rally with any type of significance the marketplace simply could not take off to the upside. At this point, the market continues to be choppy, but it does look like it’s losing a little bit of the downward momentum. Look at any rally at this point as a potential selling opportunity, as the downtrend in the Euro as well deserved.
Keep in mind that the European Central Bank is going to loosen monetary policy even further while the Federal Reserve is essentially sitting on hold. While it isn’t necessarily hawkish, the fact that the Federal Reserve isn’t overly dovish makes it the winner by default. Fading rallies and selling breakdowns is how this pair should be traded, as we reached towards the 1.09 level rather soon.
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This article was originally posted on FX Empire
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