- You can see that the Euro did in fact pull back just a bit against the U S dollar during the trading session here on Wednesday, as we are hanging around the 1.17 level, the 1.16 level offered a significant amount of support.
- And therefore, it's not a huge surprise to see that we continued to climb.
- I think there is massive support between the 1.16 level and the 1.15 level, especially now that we have the 50 day EMA sitting between those two levels.
Ultimately, I think you have to look at this as a market that is going to continue to be probably bullish based on the recent action, but that doesn't necessarily mean that we are going to launch from here.
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Slow Grind?
I think you've got a situation where it may be more or less a slow grind towards the 1.18 level. And then finally clearing there could open up the possibility of a move to the 1.19 level followed by the 1.20 level. If, and this is a big if, we were to break down below the 1.15 level, then we are going to have to take a look around the forex world in general to figure out what the US dollar is doing in general.
If the US dollar is strengthening around the world, then the euro won't be any different. In fact, I would speculate here that the euro might be the leading indicator for that. Right now, we saw a little bit of a pullback during the early hours of Wednesday, but when taken into the last three days and kind of looking at it, you can see it was a very small pullback, not a huge deal. And as a result, I think you have to look at this as a market that is going to continue to grind higher. And think the keyword here, mainly due to the fact that it's still summer, is grind.
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