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Christopher Lewis
EUR/USD daily chart, October 23, 2019

The Euro has fallen a bit during the trading session on Tuesday as the 1.1150 level continues to cause major issues. At this point, it’s very likely that the market is going to continue to see negative pressure based upon the longer-term downtrend. Looking at the chart, especially over the last couple of years, the market has shown the area between the 50-day EMA and the 200-day EMA to be extraordinarily resistant, and it now looks as if history is going to repeat itself. In fact, we have even broken slightly above the 200-day EMA, but it causes major consolidation, the market is likely to fall from there as well. Quite frankly I would need to see a weekly candlestick above that level to get overly excited about trying to buy the Euro.

EUR/USD Forecast Video 23.10.19

The German economy is almost certainly going to fall into recession, even if it’s only of the technical nature, it is likely that the Euro will start to cause issues. I think at this point it’s likely that we will go looking towards the 50-day EMA again for the initial target, but it may take several days to get there as this pair doesn’t tend to move very quickly. This is part of the reason I like the idea of shorting anyway, because it doesn’t typically move the way it just has. At this point, it looks very much like the recent rallies that we have seen that got a little ahead of themselves, and then got sold into.

Please let us know what you think in the comments below

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