The Euro has rallied a bit during the trading session on Friday only to give it all back up. Ultimately, this is a market that sees a lot of resistance at the 1.19 level that extends to the 1.20 level above. Furthermore, when you look at the longer-term chart it is easy to see that we are trading between 1.20 on the top, and the 1.15 level underneath. With that being the case, the market is likely to be thought of as a bit expensive at the moment, but it is worth noting that the most recent pullback stop that the 50 day EMA. In other words, we are at another “decision point” yet again.
EUR/USD Video 23.11.20
The European Central Bank is likely to do something in order to loosen monetary policy, and it is worth noting that a couple of Eastern countries have blocked the potential relief package coming out of the EU. With this, it could weigh upon the Euro in the short term. Nonetheless, the market still has plenty of buying pressure underneath. I think in the short term we are likely to see a pullback towards the 50 day EMA. If we can break down below there, then we will go looking towards 1.16 level underneath, which is the top of that support barrier I mentioned previously. Going into the weekend, it makes perfect sense that traders would not wish to risk too much as there are so many possible crosscurrents going on at the same time.
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