The Euro has gone back and forth during the trading session on Wednesday, as we continue to see the 1.11 EUR level attract a lot of attention. Ultimately, this is a market that remains negative longer term, so I look at rallies as a nice selling opportunity. The 50 day EMA above which is painted in red should be a nice selling opportunity. Overall, I think that the market will continue to grind down towards the 1.10 EUR level, especially considering that the market has been so negative for quite some time. At this point, the 1.10 EUR level also will attract a lot of attention. If we do flush below there, it’s very likely that the market continues the longer-term trend lower.
Euro to Dollar Forecast Video 22.08.19
Now that we are significantly below the 61.8% Fibonacci retracement level, it’s likely that we will go looking towards the 100% Fibonacci retracement level which is a little closer to the 1.05 the EUR level. With all of the problems in the European Union and of course the Germans talking about possibly doing a bit of economic stimulus, it does make sense that this pair could drop from here. Rallies at this point are looking to be very much like selling opportunities for me, unless of course the Federal Reserve gets drastically dovish in the short term. That being said, unless something fundamentally changes I will be looking for an opportunity to sell only.
This article was originally posted on FX Empire
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