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Christopher Lewis
EUR/USD daily chart, May 08, 2019

The Euro tried to rally during the trading session on Tuesday, but then rolled over yet again as the 1.12 level continues to be crucial. This was support during the previous consolidation, so now it makes sense that it would be a bit of resistance. Beyond that, the European Union growth outlook has been cut, and that of course helps the US dollar. That being the case, expect a lot of choppiness and difficult trading conditions as per usual in this market. Those who trade the EUR/USD pair know that it’s choppy at best, and you are looking at short moves 90% of the time. Because of this, it’s very unlikely to change anytime soon, as it’s just the simple nature of this market.

EUR/USD Forecast Video 08.05.19

With that being the case, you should pay attention to what the US dollar is doing in general, because if there is more of a “risk off” attitude, it’s likely that we will see this pair drift down to the 1.11 level, and then possibly down to the 1.10 level after that. The market participants continue to be stymied by any type of flow, and flow is something that we simply just do not have. With that being the case, I believe it’s likely that we are going to continue to see a lot of confusion and destruction of trading accounts that over lever this trade. Longer-term, I think we are trying to form a bit of a bottom, but we’ve got quite a bit of time before that actually comes to fruition.

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