EUR/USD Price Forecast – Euro rallies into resistance

The Euro has rallied quite significantly during the trading session on Thursday as we head toward the jobs figure on Friday. However, we are running into an area that could cause a bit of resistance.
Christopher Lewis
EUR/USD daily chart, September 06, 2019

The Euro initially fell during the trading session on Thursday, but then shot straight up in the air as more of a “risk on” attitude has come into the marketplace. Because of this, it looks as if the market is ready to run into a significant amount of resistance in the form of the 1.11 EUR level. That of course is an area that should continue to cause a lot of problems, and beyond that we also have the 50 day EMA sitting just above there. Because of this, it’s likely that sooner or later we will see some type of exhaustion enter the marketplace. With that being the case I think that simply waiting for the market to rollover on a short-term chart to start selling is probably the play going forward.

EURUSD analysis Video 06.09.19

The market not only has the 50 day EMA above there but it also has a lot of noise between 1.11 and 1.12. The Germans seem to be looking to enter recession, so that of course doesn’t help the European Union gain from here either, so I think it’s only a matter of time before the sellers return. With the negative yielding bonds in Germany and the rest of the EU, that of course drives money away from the continent and then towards the United States. Ultimately, this is a market that continues to be very noisy and difficult but I also recognize that it is in a longer-term downtrend and that should continue to be the one thing that you pay the most attention to.

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