The Euro went back and forth during the trading session on Friday, showing signs of volatility as the jobs figure came out of the United States. Having said that, the most important thing to pay attention to on this chart is the 1.12 level underneath, which is a major support level, based upon the larger consolidation area between 1.12 and 1.15. I recognize that there is a lot of noise down here, but I think what we are looking at is a bit of churning, perhaps in an attempt to try to build up enough momentum to bounce again. The fact that we are hanging about the 1.12 level is encouraging for buyers, but I don’t necessarily think that the market is going to have a straight shot back towards the 1.15 handle. I think at this point, we have two central banks that are willing to be as soft as possible, and therefore it’s going to be difficult for significant moves to happen suddenly.
EUR/USD Video 08.04.19
What I do believe is going to happen is that we are going to see a grind higher, so if you are patient enough you can probably play that trade. The alternate scenario is that the 1.1150 gets broken to the downside, reaching down to the 1.11 handle and then eventually the 1.10 level which is crucial. Overall though, I am more bullish than bearish, but I’m not looking for anything exciting to happen, just a gradual drift higher as soon as we can clear the 1.1260 level.
Please let us know what you think in the comments below