The Euro has fallen rather hard during the week, slamming towards the 1.13 level at the end of it. However, that is an area that is massive support, and then an area that I think has a lot of importance. I would expect to see buyers coming in to pick up the Euro “on the cheap”, as the Federal Reserve has shown itself to be rather dovish, and therefore a bit lacking when it comes to supporting the US dollar itself. That in and of itself provides a little bit of a lift to this market.
EUR USD Forecast Video 11.02.19
Unfortunately, we also have a scenario in Europe that isn’t conducive to buying pressure, as there are a lot of concerns when it comes to European growth. The economic numbers in Europe are starting to fall again, and more concerning they are starting to fall in Germany of all places. Because of this, I think that the market will continue to show a lot of concern to the upside as well, and therefore I think that the 1.15 level above continues to offer significant resistance. In other words, I anticipate a bounce, but I don’t expect much from a longer-term standpoint. When I do look out into the future though, I think that the slight tilt to the upside in the chart suggests that market participants are trying to pick up the Euro, and quite frankly what they need is some type of good news to make it happen.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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