Christopher Lewis
Add to Bookmarks
EUR/USD daily chart, September 03, 2018

I believe that the Euro fell slightly due to concerns about a couple of headlines crossing the wires early in the session suggesting that there could be a “no deal Brexit”, but at the end of the day I don’t think it really matters. I think it was just an excuse for the market to make a reaction. It looks to me as if we are trying to form some type of short-term bottom to rally from here. However, I recognize that if we break down below the 1.16 level, the market will probably go looking towards 1.15 level after that, as it is a large, round, psychologically significant figure in the bottom of the larger consolidation area that we had been in.

Know where EUR/USD is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

I believe at this point that the market will try to reach the 1.18 level above, which is the top of the consolidation area, but now it’s just a matter of whether we can do it from here, or if we need to pullback to build up more momentum. If we break down below the 1.15 level, then the downtrend will probably continue, and the next couple of weeks will be crucial as it’s when the volume picks back up in the marketplace as traders have come back from holiday. With the Brexit getting close to being finalized, expect a lot of volatility but eventually I think once things settle down the Euro will start to appreciate in value again.

EUR/USD Video 03.09.18

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker