The Euro rallied rather significantly during the trading session on Monday, reaching towards the 1.13 region as there is a significant amount of resistance all the way to the 1.14 handle. At this point, any signs of exhaustion could be a nice selling opportunity as we have seen more than once that the sellers are willing to jump been. If we could break above the 1.14 handle, then it is possible that we could go looking towards the 1.15 handle. Above that level, the market is likely to have more of a “buy-and-hold” type of attitude.
EUR/USD Video 07.07.20
To the downside, I believe that the 1.1175 level would be an area of support. Breaking down below there could open up a move down towards the 1.10 level given enough time, as it is a large, round, psychologically significant figure, and an area where we had seen previous resistance. It should now be support, so at this point one would have to think that there be a certain amount of buyers in that area looking to pick up the market because it was cheap.
Breaking down below there could open up a move down to the 1.07 handle, but that seems to be unlikely, at least in the short term as we have seen so much in the way of stubborn resiliency when it comes to the Euro. At this point, it is a question of whether or not the Federal Reserve can kill the US dollar, which seems to be its sole quest at this point.
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This article was originally posted on FX Empire
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