- The Euro has fallen a bit during the early hours on Friday, but we are starting to see a little bit of buying as the Americans come on board.
- After all, nobody likes selling the US dollar more than Wall Street, so that’s not a huge surprise. At this point, we are below the 1.18 level, which is a major area of previous resistance that did not hold its support so far.
On a Break Higher
If we can turn around and break above the 1.18 level, then I think we will continue to go higher. If we break down from here, then we could drop to the 50 day EMA. After that, we could go to the 1.16 level, which is a major support level from the previous uh action. But really at this point in time, we are trying to determine whether or not we are trying to continue the long term drive higher overall, there is a lot of noise near the 1.20 level. And I think it’ll be difficult for the euro to break above there anytime soon. All things being equal, this is a market that is choppy and noisy. And ultimately over the longer term, positive, we’ll just have to wait and see if we were to break down from here and then finally drop below the 1.16 level, then I think you’ve got a situation where you might start shorting.
But at this juncture, it looks like this is a simple pullback that is starting to attract attention from other traders out there that might be willing to pick up the euro. We’ll see how things close out for the week and maybe give the weekend, you know, the importance that is needed after a week that’s had four central bank decisions. Let traders get a grasp on what they want to do and see what we do on Monday. But right now, it still looks like a bullish market. And the fact that we are bouncing is a good sign. We’ll just see how it closes.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
