The Euro initially tried to rally during the trading session on Thursday but gave back the gains in order to continue falling. At this point, we are through major support and it looks like we have some “backfilling” to do in one had recently been a strong move to the upside. The 1.15 level underneath is massive support, and therefore it is worth paying attention to. I do believe that we will eventually go looking towards that area, where a lot of buyers would be interesting to pay attention to. Looking at this scenario, we could fall all the way down to the 1.15 level and still essentially be in an uptrend.
EUR/USD Video 25.09.20
There are a lot of concerns coming out of the European Union, as the PMI numbers were soft and of course we have to worry about the coronavirus figures picking up in the European Union as well. Ultimately, I do think that this is a market that has plenty of headwinds ahead of it, and it is worth noting that the US Dollar Index has shown itself to be turning around in general, which is the direct inverse of what we are seen on this chart.
On a breakdown below the bottom of the candlestick for the day on Thursday, I fully anticipate that this market will start to accelerate to the downside, and quite frankly it would not be a huge surprise to see this happen, mainly because the market is starting to factor in a lot of negativity out there. Either way, I have no interest in buying, at least not at the moment.
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This article was originally posted on FX Empire
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