The Euro shot through couple of barriers during the week, breaking through the 1.17 level, the 1.18 level, and even threatening the 1.19 level. The way we have done this, it has been quite impressive, but I think eventually we will regain all of this territory after a pullback. The pullback is something that is desperately needed, and therefore it is likely that we will see buyers come in to pick up value when it occurs. The 1.15 level is now your absolute floor in the market, as I think the trend has most certainly changed.
EUR/USD Video 03.08.20
The candlestick is somewhat impressive, but it is likely that we are going to continue to see plenty of people acknowledge the fact that the Federal Reserve is flooding the markets with greenback and therefore it is likely that we will continue to see the Euro continue to go higher longer term. We are seen a major trend change and therefore there are plenty of people waiting to see a bit of value appear so that they can take advantage of this massive change.
The trend in FX tends to last quite some time, so even if we do get a bit of a pullback, I think that there will be plenty of people willing to take advantage of that value. I have no interest in shorting the Euro, it has shown us just how explosive it is at the moment, and with the US dollar losing so much strength, it makes quite a bit of sense that we would see a bit of a cool off before we move in the same direction again.
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This article was originally posted on FX Empire
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