The Euro continues to hug the 1.12 level, an area that was support during the previous consolidation area. It should now be resistance, just as one would expect. However, we have so many different potential headlines out there that it is going to be difficult to try to figure out where the US dollar should go. Quite frankly, we are in a “risk off” world over the last couple of days of the US dollar has picked up a bit of strength. Longer-term though, one has to wonder how things play out.
Euro to Dollar Forecast Video 09.05.19
The red 50 day EMA above could also cause resistance so if we were to break above the 1.1250 level, then I think the Euro could gain a bit, perhaps reentering the previous consolidation area that extends all the way to the 1.15 level. However, I think in the meantime we have a bit more “base building” to do, meaning that we are trying to form a longer-term bottom, but these things take quite some time. We could dip as low as 1.11 and then 1.10 before that happens. Keep that in mind, as turning the trend around in the currency pair is normally a long-term affair. It’s a lot like turning a huge ship in the water. If we were to turn around and break down below the 1.10 level, it would almost certainly have something to do with the major financial problem.
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