The Euro had a very choppy and volatile session during the day on Tuesday as we went from gains to losses to gains again, in a familiar pattern. Overall, the market seems to be stuck in a bit of a range and I still think that the 1.14 level above is going to be massive resistance. In fact, we are starting to see even more of a pushback to Euro buying at the 1.1350 level. I remain one who is quick to fade short-term rallies that show signs of exhaustion, but I am not necessarily looking to get too big in my position. In fact, it seems as if the currency markets are simply grinding away sideways trying to figure out where they want to go next. This pair tends to be one of the worst offenders of grinding and going nowhere over the longer term, so it makes sense that we would have issues here.
EUR/USD Video 08.07.20
At this point time we are trying to establish some type of range, so if we could turn around and breakdown below the 1.1180 level, then I think the market goes looking towards the 1.10 level, or at least the 200 day EMA which is closer to the 1.1050 level. At this point in time, the market initially looked as if they were trying to form some type of bullish flag, but we have so much in the way of resistance that it is difficult to get overly excited at this point. Expect a lot of sideways chop from here on out until we get a catalyst.
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This article was originally posted on FX Empire
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