The Euro initially fell during the trading session on Thursday but did bounce a bit during the trading session to show signs of resiliency above the 1.13 level. At this point, it’s likely that the 1.13 level will offer support though, so a bounce is very likely.
The Euro initially fell during the trading session on Thursday, showing signs of negativity yet again. However, the 1.13 level should offer significant support. I think that at this point it’s likely that the overall range continues, so therefore I do think that there is a likelihood that the buyers come back in. That being the case, I would like the idea of buying short-term dips. I think the overall choppiness and indecision probably continues to be a mainstay in this market.
The 1.13 level of course has been tested several times, so it’s likely that we will find buyers just below, and I suspect that we continue to see the 1.15 level above offer a significant amount of resistance. Not only is it a large, round, psychologically significant figure, but also the 200 day EMA causing resistance just above there as well. The biggest problem that I see in this pair is that the European Union has a lot of negativity around when it comes to economic figures, but at the same time we have a softening Federal Reserve, creating a bit of a “push pull” effect in this market.
I suspect that by the time Monday rolls around, we should have a nice buying opportunity. However, this would be short-term to say the least, as we have no traction in either direction. If we do break above the 200 day EMA eventually, that should send this market into a stronger uptrend. I believe that the 1.12 level underneath, which coincides nicely with the 61.8% Fibonacci retracement level, is the absolute floor in the downtrend.
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Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.