The Euro has broken down rather significantly during the week, forming a "four high with lower close" pattern. This is an extraordinarily bearish pattern, and therefore it looks as if the Euro has further to fall. The 1.10 level underneath will cause a certain amount of support obviously, as it is a large, round, psychologically significant figure. However, it's very unlikely that it holds for a significant amount of time. The easiest way to trade this market is to probably look for short-term rallies that you can sell. That being said, if you simply want to trade the longer-term charts a "sullen hold" situation continues.
Euro to Dollar Forecast Video 11.11.19
We have been in a downtrend been channel for some time, and this looks like it's going to be more of the same. The 1.09 level has been tested before, and it will probably be broken this time. Rallies at this point continue to show a lot of resistance at the 1.12 level, an area that caused four separate highs. This shows a bit of a "brick wall" that the market could not get above and the fact that we have broken down from there suggests that the market is going to continue to drift lower. Keep in mind that the market is one that is very choppy and highly driven by high-frequency trading, so don't expect some type of significant meltdown. I expect more of the same going forward that we have seen over the last year and half, as nothing has fundamentally changed in this market.
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This article was originally posted on FX Empire