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Christopher Lewis

The Euro initially tried to rally during the trading session on Tuesday, but then rolled over to show signs of weakness again. Right around the 1.0850 level we continue to see selling pressure, and we are most certainly in a downtrend. The 1.09 level above there is significant resistance as well, and then eventually the 1.10 level. I do like the idea of buying the US dollar as we continue to see a lot of weakness coming out of the European Union, and there are now concerns about Italy and the coronavirus.

EUR/USD Video 26.02.20

US treasuries continue to attract a lot of money so that of course has its influence over here as well. The US dollar has been the favored currency for a while, and although we have gotten to be oversold as of late, it could very well be a scenario where we consolidate in this area for a while before trying to break down again. If that’s going to be the case, then there is more downward pressure than up. Even if we were to break above the 1.0850 level on a daily close, then I will simply look for an opportunity to sell from a higher level such as the previously mentioned 1.09 handle. In fact, it’s not until we break above the 1.10 level that I would consider buying the Euro, as it would be such a big and huge turnaround that it would not be able to be ignored. To the downside, the lows could be targeted quickly on any type of bad news.

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