The Euro initially tried to rally during the trading session on Thursday but then rolled over to form a bit of a shooting star. The market looks as if it is ready to roll over again as we have tested major resistance and failed. The 50 day EMA sits just above the shooting star from the Wednesday session, which is a major barrier as well. Ultimately, it looks very likely that the US dollar will continue to strengthen, punishing most other currencies around the world. Ultimately, this is a market that continues offer selling opportunities on short-term charts to fade rallies.
EURUSD analysis Video 03.05.19
The 1.11 level underneath should continue to be crucial, but it’s very likely that if we break down below there the market should then go down to the 1.10 level. That is an area that will attract a lot of attention, as it is a large come around, psychologically significant figure, and of course an area that we have seen provide support and resistance in the past. This is a market that looks very likely to continue to fail based upon the momentum, and the fact that we have recently broken down through the consolidation area.
The alternate scenario of course is that we break above the top of the shooting star from the Wednesday candle stick, and the 50 day EMA. If we do, then the market should continue to go towards the 1.13 level, and then possibly the 1.14 level after that. However, that seems to be very unlikely in the short term, as we have seen so much bearish pressure.
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