- The euro dipped slightly early Friday, but as Americans begin to shop, there’s a hint of movement.
- No one really enjoys selling USD more than Wall Street, so this isn’t too surprising. Right now, we’re sitting below the 1.18 mark, which was a crucial resistance level that hasn’t held up as support.
Sometimes, a break helps
https://www.youtube.com/watch?v=qfl2fb3gok8
Looking ahead, if we manage to surpass the 1.18 level, I think we’ll see continued growth. If it drops from here, it might hit the 50-day EMA. From there, a possible fall to around 1.16 could happen, where we find significant support from prior actions. In truth, we’re still figuring out if the long-term upward trend is going to hold. There’s quite a bit of uncertainty around the 1.20 mark, making it challenging for the euro to push through anytime soon. This market feels, well, choppy and chaotic. Ultimately, we’ll have to observe if it breaks down further, particularly below the 1.16 range.
At this moment, it seems like a mild pullback that’s catching the attention of traders eager to buy euros. We’ll see how the week wraps up and perhaps clarify our positions over the weekend following the four significant central bank announcements. Everyone’s waiting to see what the market will do on Monday. For now, it does appear to be a bullish market. That upward movement is encouraging. The key will be watching how it closes.
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Christopher Lewis has been trading forex for over 20 years and has contributed regularly to Daily Forex since its launch. He writes on various online platforms, sharing insights on Forex and other financial matters. His approach often incorporates technical analysis, and he tends toward a long-term trading style, with positions lasting days or even weeks.
