The Euro has shown itself to be a bit more resilient during the trading session on Friday, as we initially sold during the Asian session but turn things around during the European Union session. That being said, the market looks likely to continue to see a lot of volatility in this area, due to the previous uptrend line that has been so important and the fact that there is a significant amount of supply in this region. With that being the case, I do like the idea of fading this rally, but not until we get a daily candlestick that looks a little bit more exhaustive. Right now, we obviously do not have that so I think you would be jumping the gun just a bit if you are trying to get short of the market right here.
EUR/USD Video 26.10.20
To the downside, I would fully anticipate that we could make a move towards the 50 day EMA, possibly even the 1.17 level given enough time. With that, the market is likely to continue to see a lot of choppy volatility but given enough time I do think that we will make some type of longer-term decision, perhaps waiting on stimulus in the United States, more Brexit nonsense, and of course the United States presidential election. Once we get all of this noise out of the way, we can start to trade on whatever the latest rumor is, and it certainly will be something to do with Brexit.
Until then, I think that we continue to fade near the 1.19 level, as it is a massive barrier that extends all the way to the 1.20 level.
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This article was originally posted on FX Empire