- The Euro continues to try to rally against the US dollar, but at this point in time, it's likely that the market continues to see selling pressure just above. And quite frankly, this has been a very lackluster week for the Euro. We are approaching an area that I think we have to make a decision with the uptrend line that’s coming into the picture. The 50-day EMA sitting just below the current area offers a bit of support as well. So, I'm paying close attention to this.
- The euro is going to have to basically put up or shut up pretty soon with threats against the U S dollar. One thing is for sure that since we have seen the FOMC press conference or the statement, you know, we just, we've seen the market do nothing but fall since then.
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Whether or not that remains the case, you’ll have to wait and see. All things being equal, this is a market that may have to think about the fact that maybe the economy is slowing down if that's the case that drives a demand for the US dollar. If we break through the 50 day EMA, the uptrend line as well, then we start to target 1.16. Anything below there, then I think the euro is in trouble. To the upside, the 1.18 level continues to be resistant. Breaking above that is a very bullish sign and probably has the euro testing the highs during the FOMC press conference, is right around the 1.19 level. We are still in an uptrend that has not changed, but what we are starting to see is a serious lack of momentum. We have to ask the question, are we just working off some of the excess froth or are we looking at an area between 1.18 and 1.20 that was very influential multiple times going back about eight years. Have we gone too far? If we get more risk off, the answer will be obvious.
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