Euro finding slight support at round figure

The Euro has bounced a bit during the day on Wednesday, using the 1.17 level as support. This coincides with the move and the interest rate markets, as things have cooled off a little bit in the United States. Regardless, I see a significant amount of resistance above, especially near the 1.18 level on the short-term charts. I think that it’s only a matter time before the sellers come back in and take advantage of any type of weakness, giving us an opportunity to short this market yet again.

The longer-term outlook of this market is to the downside, as we have certainly entered a downtrend. We have wiped out so much value in the Euro in the short term though, I feel that we almost need some type of bounce. The 1.1550 level is the target, as it would wipe out the entirety of the most recent rally. After all, we are below the 61.8% Fibonacci retracement, normally a sign that we are going to break down and wipe out most of the rally. I think that we could break down below there, perhaps targeting the 1.15 handle as it is a large come around, psychologically significant number. However, that doesn’t mean that we get down there right away, and rallies of course could be expected. Quite frankly, the market has broken down much quicker than I thought it would. Because of this, I think we may need to see a little bit of bullishness for people to find value in buying the greenback again.

EURUSD analysis Video 25.05.18