The Euro initially tried to rally during the trading session on Friday but then broke down from here to show signs of weakness again. That being said, the market looks as if the 1.17 level is going to be targeted, and if we break down through their it is likely that we could go looking towards 1.16 level. The market has been in a downtrend for a while, and therefore it is likely that we will continue to go to the downside.
EUR/USD Video 27.09.21
To the upside, the market breaking above the 1.175 level would open up the market for a move towards the 50 day EMA. The 50 day EMA of course is sloping lower and showing signs of negativity. At this point, it is very likely that the market will continue to see this as a negative area of resistance, so keep that in mind. If we break above it, that could be a huge difference, but at this point we are starting to ask questions of the US dollar strength around the world, and this will be a great indicator as to where the dollar is going against multiple other currencies.
If we turn around a break above the highs of the last couple of days, the then I think the short term downward pressure could in for a short-term move, but all things been equal, this is a market that is going to be asking questions as to whether or not we had just formed a double bottom, or are we going to continue to grind lower?
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