The Euro has gone back and forth during the trading session on Friday as we continue to sit just above a major support level. That being said, there is also something to be said about the support “zone” that extends from 1.0750 level to the 1.08 level. Ultimately it looks as if the market probably will continue to respect that, but if we were to break down below the 1.0750 level it is likely that we will fall apart at that point and continue much lower, at least another 100 pips before finding buyers.
EUR/USD Video 18.05.20
Ultimately, if we do rally from here, I believe that the 50 day EMA comes into play as significant resistance and therefore probably not something that is going to be easily broken above. It sits at roughly 1.09 so that means that level should be important. Either way, I have no interest in buying the Euro as the European Union has a whole host of issues that it will be dealing with. Ultimately, this is a market that is waiting to see whether or not the European Union can get its act together, and quite frankly I do not see how it does as we have Europe and Germany fighting each other at the moment, not to mention several other issues like the Brexit coming down the road. With that in mind, I like the idea of fading rallies as they occur, and I will not hesitate to sell the Euro as we get closer to the top of the most recent range which is topped by the 50 day EMA.