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Christopher Lewis
EUR/USD daily chart, August 09, 2019

The Euro tried to rally a bit during the trading session on Thursday but continues to see a lot of resistance above as we continue to pull back. The 50 day EMA has slice through the top of the three candlesticks, and therefore it looks very likely that we will continue to see a lot of selling pressure every time we rally. With that in mind I like the idea of fading these rallies as they occur. This doesn’t mean that we can’t change course, but it’s obvious that we have a lot of resistance between the 1.12 level and the 1.13 level. Overall, the 200 day EMA continues offer a lot of resistance, so I do think it is only a matter of time before sellers come back in on all of these short-term rallies.

EURUSD analysis Video 08.08.19

I like the idea of trading short-term back and forth more than anything else, as it has been somewhat reliable. This is the wrong time of year to expect a major trend changing events, as a lot of traders will be away for holiday. Beyond that, we have a lot of uncertainty around the world so it is difficult to imagine a scenario where the Euro suddenly takes off. On the other side of that equation though, it’s a bit difficult to imagine that we are simply going to see some type of massive break down either. I think it’s slow and steady with a slightly downward attitude.

Please let us know what you think in the comments below

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