EUR/USD Price Forecast – Euro Testing 200 Day EMAThe Euro has rallied a bit during the trading session on Thursday, breaking above the 200 day EMA. We have since pulled back a bit though, so it looks as if the market is probably going to fade in this general vicinity.
With Christine Largarde speaking very dovish tone, I think that the Euro is going to continue to struggle going higher from a longer-term move, and at this point in time it’s very likely that the significant barrier above will continue to cause some issues. The 200 day EMA of course is something that should be paid attention to as longer-term traders like the look of it as resistance, but it should also be pointed out that there is a lot of noise above at the 1.12 handle as well. I believe that is a major resistance barrier as well, and then of course we have a downtrend line just above. With all of this things showing up in the same time, is very likely that the sellers will come in and push lower.
EURUSD analysis Video 13.12.19
Underneath, the 50 day EMA is starting to tilt higher, but at this point it’s likely that the dovish Christine Largarde will continue to push the Euro lower. The CPI numbers in the United States were miserable, so this could be part of the reason we are seen a little bit more extended bullish pressure, but at this point one thing is for sure: this is a market that has been in a downtrend for some time. Ultimately though, if the market were to break above that trendline then it’s a longer-term “buy-and-hold situation”, but it would probably be very choppy just as the move lower was. Ultimately, this is a market that has a lot of work through in order to be bullish, so I’m looking for signs of weakness to start selling.
Please let us know what you think in the comments below