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Christopher Lewis
EUR/USD daily chart, August 28, 2019

The Euro has done very little during the trading session on Tuesday as we continue to dance around the 1.11 EUR level. This is an area that has offered quite a bit of noise and support in the past, and I also recognize that there is a significant amount of support that extends all the way down to the 1.10 EUR level. This makes sense, because the 1.10 EUR level is a large, round, psychologically significant figure. Ultimately though, when I look at this chart one thing that I cannot help but notice is that we are in a downtrend and we simply cannot seem to hang onto gains tells me that we are very likely to continue to grind lower. That’ll be the key word here though, “grind.”

EUR/USD Forecast Video 28.08.19

Looking at the 50 day EMA above, you can see that it is slowing quite drastically, and therefore it has continued to offer quite a bit of resistance as well. If we can break down below the 1.10 EUR level, and I think it will take several days to do so, the market will probably go down to the 1.05 EUR level. There is always the alternate scenario, but at this point we probably need to break above the 1.12 EUR level, and sustainably so. Right now, that doesn’t look very likely, especially considering that the German economy looks like it’s about to enter a recession. There continues to be poor economic figures coming out of the country, which has a direct effect on what happens with the European Union.

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