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Christopher Lewis
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EUR/USD

The Euro has bounced a bit after initially breaking through the 1.08 level during the trading session on Wednesday. The US dollar continues to be much more attractive than the Euro, but we are at the bottom of what has been a clear range of trading between the 1.0750 level and the 1.10 level above. With that being the case, sellers are starting to take profit as this pair does tend to be very choppy and sideways overall. This of course makes quite a bit of sense as it gives you the ability to play the range and then simply step away.

EUR/USD Video 07.05.20

All things being equal, this is a market that I think will bounce a bit but then could see a lot of resistance again at the 1.0950 level. In that general vicinity I like the idea of shorting this market, as it has held so drastically. On the other hand, if we do break down below the 1.0750 level, then it is likely that the market probably goes down to the 1.0650 level, and then possibly down to the 1.05 handle. If the Euro breaks down below the 1.05 level from a longer-term standpoint, it is going to break down significantly and my longer-term projection screams for a move down to the 0.80! Obviously, that is a long way away from happening, but it is the longer-term possibility for this pair. On the other hand, if we turn around a break above the 200 day EMA which is painted in black on the chart, then we can start to talk about an uptrend but even then, there would be a lot of work to do.

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