The Euro has rallied again during the trading session on Friday, but as we had seen on Thursday, the area above the 1.16 level is significant resistance. The market forming a couple of shooting stars in this area would of course be a very negative sign, showing just how negative their Euro is at the moment, considering that the US dollar is getting pounded on against almost all other currencies. With that being the case, the market should continue to see a lot of noisy behavior, and at this point in time if we were to break above the shooting star that was formed on Thursday, that could change things and send this market higher. That being said, it seems very unlikely at this point to happen at least not easily.
EUR/USD Video 18.10.21
If we break down below the bottom of the last couple of days, then it is likely that we will try to take out the massive candlestick from Wednesday. Breaking down below that then allows this market to put serious pressure on the 1.15 handle. If we break down below there, the market is likely to go looking towards the 1.1250 level, which has seen important in the past, and therefore a little bit of “market memory” could come into the picture. If we were to break higher, then I think the market goes looking towards the 50 day EMA, which is backed up by the 1.1750 resistance barrier. Either way, I do not have any interest in buying this market, because quite frankly if I want to short the US dollar, I will do it against other currencies as the Euro is so weak.
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This article was originally posted on FX Empire