The Euro rallied a bit during the trading session on Wednesday again, but as we have seen several days in a row, the 50 day EMA has come into play and has offered quite a bit of resistance. By doing so and being so reliable this could kick off short-term selling opportunities.
Oil is worth paying attention to as it has such a major influence on what happens with the Canadian dollar, and it should be noted that the crude oil markets have seen quite a bit of resiliency as of late. If that’s going to be the case, then it should help influence the Canadian dollar to gain value. At the same time, the Euro continues to struggle due to the fact that Brexit is going on, and of course we have the fears of recession in the European Union. With that being the case, it’s very likely that the Euro will continue to struggle in general. It has rallied a bit against the US dollar, but it is also struggling at the 50 day EMA over there as well.
All things being equal, it’s very likely that the market continues to see a lot of noise, but the longer-term downtrend is still very much intact, and there is significant resistance not only at the 50 day EMA, but also the shooting star from Thursday of last week which coincides with the 1.47 round figure. All things being equal, this is a market that should continue to go lower but I would also anticipate a lot of choppiness as there are so many different moving pieces around the world right now. The headlines and the Brexit situation alone could make this happen as although a lot of traders focus on the British pound, it obviously has an influence on the Euro as well.
Oil is worth paying attention to as it has such a major influence on what happens with the Canadian dollar, and it should be noted that the crude oil markets have seen quite a bit of resiliency as of late. If that’s going to be the case, then it should help influence the Canadian dollar to gain value. At the same time, the Euro continues to struggle due to the fact that Brexit is going on, and of course we have the fears of recession in the European Union. With that being the case, it’s very likely that the Euro will continue to struggle in general. It has rallied a bit against the US dollar, but it is also struggling at the 50 day EMA over there as well.
All things being equal, it’s very likely that the market continues to see a lot of noise, but the longer-term downtrend is still very much intact, and there is significant resistance not only at the 50 day EMA, but also the shooting star from Thursday of last week which coincides with the 1.47 round figure. All things being equal, this is a market that should continue to go lower but I would also anticipate a lot of choppiness as there are so many different moving pieces around the world right now. The headlines and the Brexit situation alone could make this happen as although a lot of traders focus on the British pound, it obviously has an influence on the Euro as well.