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EUR/USD Midday Technical Analysis October 31

The Euro has broken down again during trading on Tuesday, reaching towards the 1.13 level as the Americans jumped on board. I think at this point it’s likely that the Euro is not only going to touch that area, but it looks very likely to break down below there.
Christopher Lewis
EUR/USD Midday chart, October 31, 2018

The Euro has broken down during trading on Tuesday again, reaching towards 1.13 level and area that I think will cause a certain amount of psychological and perhaps structural support based upon longer-term charts. At this point, I think that the market continues to struggle overall, and I do think that we will break down below the 1.13 level. If we do, then that opens the door to much lower levels, perhaps even the 1.12 level, and then after that the 1.10 level. I simply do not see a path higher for the Euro as long as we have discussions that focus around Italy and of course the Brexit. I believe that traders are starting to focus on a no deal Brexit, which believe it or not will hurt the European Union as well as the UK.

Euro to Dollar Midday Forecast Video 31.10.18

At this point, I believe that bounces are to be sold, with the 1.1350 level being a significant resistance barrier. I don’t like the idea of buying the Euro until we get some type of resolution between the Italians and the EU, and of course would be much more interested once we get the Brexit deal, assuming it even happens. At this point, economic numbers in the European Union have been a bit week, and I think that we are looking at a scenario that continues to be very difficult for the buyers, so at this point I choose to take the least path of resistance, which is the downside but of course being patient is probably going to be necessary.

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