The Euro bounced slightly during the trading session on Friday as we continue to respect the area on the chart that I have marked out support. However, keep in mind that there wasn’t much in the way of volume during the trading session on Friday as it was Good Friday, so I would not read too much into the daily action. What’s even more important is that the 1.12 level is holding at support. If it gives way, we could see a move much lower, especially on a daily close below the 1.1150 level.
EUR/USD Video 22.04.19
To the upside, I believe that the red 50 day EMA is going to cause a bit of resistance, just as the 1.1325 level will. A break above that level could open the door towards the 1.14 handle, and of course the black 200 day EMA in that same vicinity. The larger consolidation is between the 1.12 level on the bottom and the 1.15 level on the top, but quite frankly we are starting to see more of a relentless selling crowd than buying. We need to break above the recent highs at the 1.1325 level in order to continue the overall consolidation, otherwise we could eventually break down.
The Euro is going to continue to be very choppy overall, so quite frankly it wouldn’t put too much faith in a trade for a longer-term move. With both central banks becoming easier these days, neither currency is particularly appealing. However, if we do break down below the support underneath, that could start a significant move in US dollar strength around the world.
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This article was originally posted on FX Empire
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