- The euro has gone back and forth during the trading session here on Thursday as traders continue to look to try to sort out where we're going to go with the US dollar longer term.
- That being said, the market is basically stuck in a range at the moment. And I do think that makes a lot of sense considering that the non-farm payroll announcement comes out on Friday, the Thursday session will probably be very quiet.
- Therefore you cannot read too much into the price action as we are just sitting in the middle of the same consolidation that we have been in for quite some time.
Interestingly enough, we have seen the 50 day EMA come into the fold, offering support right along with the 1.16 level. To the upside, the 1.1750 level is resistance that extends all the way to the one point one eight level.
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More Sideways Action?
All things being equal, this is a market that has gone sideways after a nice uptrend. And I think traders are starting to wonder whether or not the Federal Reserve possibly cutting interest rates, supposedly cutting interest rates that is in September, isn't the sign of something a little bit more ominous for the global economy. If it does end up being that way, then the US dollar will get a bit of a bid in a simple safety trade type of situation. Ultimately, I think this is a market that has a lot of decisions that will have to be made soon.
But ultimately, we are currently looking at this through the prism of trying to sort out where to go next. If we can break down below the 1.16 level, then the 1.14 level could be your target. A break above 1.18 opens up the possibility of 1.20.
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