The Euro tried to rally during the trading session on Tuesday, as the 50 day EMA causes a lot of resistance, and it now looks as if it’s going to hold this market to the downside. The shooting star of course is a negative sign, and it looks likely that we are probably going to continue to show downward pressure given enough time. Beyond that, the crude oil markets look as if they are trying to find their footing, and that tends to help the Canadian dollar as well.
To the downside, the 1.45 level is a potential target, that is supported that extends down to the 1.44 handle. We have been in a downtrend for quite some time, and it’s likely that we will continue to see this market show signs of vulnerability and weakness every time it rallies, but at this point the Euro is suffering at the hands of Brexit, and of course the potential recession that half of the economy is entering. To the upside, it’s almost impossible to imagine a scenario until of course we broke above the 1.4750 level on at least a daily candle stick, if not a weekly candle stick. This is simply a continuation move of the overall downtrend, and therefore should be likely to work out.
Short-term rallies offer nice selling opportunities, and obviously a break to a fresh, new low open sub the door to lower levels, perhaps the 1.4250 level, which is a potential psychologically significant figure. All things been equal though, this is very likely a market that every time you see a rally, it should be nice selling opportunity. It has been very choppy to say the least, but the Euro has been in a long grind lower over the last 18 months and looks likely to continue.
To the downside, the 1.45 level is a potential target, that is supported that extends down to the 1.44 handle. We have been in a downtrend for quite some time, and it’s likely that we will continue to see this market show signs of vulnerability and weakness every time it rallies, but at this point the Euro is suffering at the hands of Brexit, and of course the potential recession that half of the economy is entering. To the upside, it’s almost impossible to imagine a scenario until of course we broke above the 1.4750 level on at least a daily candle stick, if not a weekly candle stick. This is simply a continuation move of the overall downtrend, and therefore should be likely to work out.
Short-term rallies offer nice selling opportunities, and obviously a break to a fresh, new low open sub the door to lower levels, perhaps the 1.4250 level, which is a potential psychologically significant figure. All things been equal though, this is very likely a market that every time you see a rally, it should be nice selling opportunity. It has been very choppy to say the least, but the Euro has been in a long grind lower over the last 18 months and looks likely to continue.