The Euro has tried to rally during the trading session on Friday but gave back significant gains above the 50 day EMA. This matches what happened during the Thursday session, and I think at this point it’s likely that we roll over and reach back towards the blue circle on the chart. The 61.8% Fibonacci retracement level underneath will cause support, so the question now is whether or not we break down from here and break through there. Having said all of that, the Federal Reserve loosening its monetary policy should drive the US dollar lower overall, and this pair higher in theory. However, it’s obvious to me that the market is telling us that the area above is far too much in the way of resistance. Ultimately, we also have shooting stars above here as well. I do think that we are getting ready to roll over so the question now is whether or not the bottom that I have marked on the chart can hold?
EUR/USD Video 15.07.19
If we were to break down through there, the market probably goes down to the 1.11 level underneath. That is an area that is massive support but quite frankly if the Euro can’t rally after the Federal Reserve has suggested it was ready to cut interest rates tells just how bad this pair is. Ultimately, this is a market that shows extreme weakness, so it’s very likely that we are about to roll over due to the fact that we have reinforced the candle stick from the previous session.
Please let us know what you think in the comments below