Euro falls during the Friday session to find support belowThe Euro fell during most of the trading session on Friday but did find a bit of support near the 1.1725 level. This is an area that has been resistance in the past, so it makes sense that we could find a bit of a bounce in the short term from here.
The Euro fell against the US dollar initially during the day on Friday, perhaps in a bit of a risk off move after less than impressive German economic figures came out. However, we have seen a bit of a bounce from the 1.1725 level, and it looks very likely that we are going to turn around and go towards the 1.1850 level after that. This is an area that has been massive resistance in the past, and now we have come back to retest this area and perhaps collect buyers at this point to continue the move to the upside.
The weekly candle is a bit of a shooting star, but not a perfect one. I believe that the market should continue to see a lot of value hunters coming into play, especially if we can keep from escalating the trade war concerns and of course headlines shocks. The market looks very likely to be noisy and choppy, but when I look at the longer-term charts it seems as if we are making a bit of a stand after the previous weeks hammer, and that of course gives me more of an upward bias, at least over the next several weeks.
On the June 14 meeting docket for the European Central Bank, it is suggested that they will be talking about leaving quantitative easing, and if they do, that should be very bullish for the Euro itself.