The Euro initially tried to rally during the trading session on Wednesday, but I gave back the gains yet again as we have seen over the last several days. We are currently hovering around the 50 day EMA which of course will attract a lot of attention, but I also believe that the 1.13 level is also catching a lot of eyeballs. At this point though, it looks like we may pull back a bit as we are starting to run out of momentum, but quite frankly this is all part of a bottoming pattern anyway. While I do see a short opportunity to sell this market, I’m not overly interested in doing so.
EUR/USD Forecast Video 18.04.19
I believe that a pullback towards the 1.1250 level could be an interesting buying opportunity, just as a break out above the 1.1325 level would be as it has been the highs of the last couple of days. With that being said, it makes quite a bit of sense that a move above there would bring in fresh money. We are still in the overall consolidation area, even though we recently had a massive selloff. If you look back to the left, you can see that happens quite often in this pair.
We are still stuck between 1.12 on the bottom and 1.15 on the top, and I don’t think that changes anytime soon. If that’s going to be the case, we might as well play the range that the central banks are offering us as both are trying to outdo the other as far as dovish language is concerned.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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