The Euro has had a strong session on Friday, breaking above the top of the shooting star from the Thursday session and testing the 200 day EMA. At this point, what’s particularly telling about this session is that the market seems to be quite comfortable at this level, unlike previous sessions that it has pulled back from. With that being the case it’s very likely that we are about to see the market break back above the 200 day EMA for a bigger move.
Initial target would be the 0.90 GBP level, followed perhaps by the 0.91 level. Keep in mind that the Brexit of course continues to push this market around, and the fact that the Euro is starting to pick up a bit of steam suggests that traders are betting on a messy Brexit, not exactly a far-fetched idea.
Another thing to pay attention to is the fact that the 61.8% Fibonacci retracement level has held, and the candle stick for Friday has taken out several long wicks. This shows real resiliency by the bullish traders out there and an attitude of conviction that typically leads to a larger move. The 50 day EMA being Rogan to the upside above could also bring in fresh money, but quite frankly at this point it looks as if the market has already given you a bit of a hint as to where it will be going next. Obviously though, if we were to break down below the recent lows that would be a very negative sign and could send this market much lower. The complete rejection of the 0.88 level is something that should be paid attention to though, as it has been so stringent and flown in the face of so much downward pressure. Quite frankly, it looks as if the sellers have run out of steam.
Initial target would be the 0.90 GBP level, followed perhaps by the 0.91 level. Keep in mind that the Brexit of course continues to push this market around, and the fact that the Euro is starting to pick up a bit of steam suggests that traders are betting on a messy Brexit, not exactly a far-fetched idea.
Another thing to pay attention to is the fact that the 61.8% Fibonacci retracement level has held, and the candle stick for Friday has taken out several long wicks. This shows real resiliency by the bullish traders out there and an attitude of conviction that typically leads to a larger move. The 50 day EMA being Rogan to the upside above could also bring in fresh money, but quite frankly at this point it looks as if the market has already given you a bit of a hint as to where it will be going next. Obviously though, if we were to break down below the recent lows that would be a very negative sign and could send this market much lower. The complete rejection of the 0.88 level is something that should be paid attention to though, as it has been so stringent and flown in the face of so much downward pressure. Quite frankly, it looks as if the sellers have run out of steam.