- During my daily analysis of the EUR/USD pair, the first thing I see is that we are hanging around the 1.08 level, an area that of course has been important multiple times.
- This is more of the same action that we have seen over the last several days, and therefore I think we are simply hanging around and trying to sort out what to do next.
- The euro of course is going to continue to be sensitive to the idea of what happens next in the bond market in America, due to the fact that the US dollar strengthening has been the major factor of what we are seeing here.
Technical Analysis
The technical analysis ot the EUR/USD exchange pair of course is rather negative, but the fact that the 1.08 level has offered support multiple times suggest that we are going to continue to see a lot of action in this area.
Ultimately, if we do break down from here, I believe that the 1.0750 level is an area that is the bottom of the “support range” that is active at this point. If we were to break down below there, then things could get rather ugly, and open up the possibility of an even bigger drop from here.
On the other hand, if we do break above the 1.0850 level, it could be the beginning of some type of correction, perhaps all the way to the 200 Day EMA. That is at roughly 1.09 and dropping.
That’s an area that I think would attract a lot of attention, and therefore people would have to watch very closely as to how we behave in that general vicinity. If we were to break above the 200 Day EMA, then it would obviously be a very bullish turn of events. However, if we were to see a significant amount of exhaustion near that area, then I would have to believe that the market is likely to pull back and start falling toward the 1.08 level again. Either way, I think we are going to see a certain amount of choppiness.
Ready to trade our Forex daily analysis and predictions? Here are the best European brokers to choose from.
