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Christopher Lewis
EUR/USD daily chart, November 18, 2019

The Euro has rallied a bit during the trading session on Friday to go into the weekend, reaching towards the 50 day EMA. At this point, the market is bouncing from the psychologically important 1.10 level, an area that of course would cause a lot of interest anyway. Looking at this chart, I think it suggests that the market could go to the 1.11 level where we should see more selling pressure. Don’t forget that we are still in a longer-term downtrend, so at this point you have to believe that the trend is still intact, at least until the market were to break above the top of the “M pattern” that has recently sent the market lower. We have filled the measured move from that pattern, so that has been taken out of the picture. However, when you look at the longer-term trend of the last almost 3 years, it looks as if every time we rally it simply gives you an opportunity to pick up “cheap dollars.”

EUR/USD Video 18.11.19

To the downside, I think that the 1.09 level underneath would be support and a target, and if we were to break down below there it’s likely that the market goes down to the 1.05 level. At this point, the market should continue to see sellers take advantage of this market as we have seen so much in the way of negativity over the longer term, but it is also very choppy, so at this point it’s difficult to hang onto longer-term trades.

Please let us know what you think in the comments below

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