- The euro initially tried to rally during Monday’s trading session, though it held on to some of its gains. It was a fairly strong day, but it is worth noting that late in the trading session we saw the Euro give up some of its gains on the first signs of significant resistance right around the 1.0430 level.
- This is a market that I think will continue to have many of the above issues.
The candle says it all
Throwing it out the way it did, I think this is a market that’s going to do exactly what I thought it was going to do in the sense that when we recover, there’s going to be a large supply of Euros ready to jump into the market. I think part of what you’re looking at right now is a situation where interest rates in America were falling during the day when news came out suggesting that the United States was going to put tariffs on everything, which of course, Donald Trump came out and assured that that’s not true and that it is actually a lie. And at that point, then the euro gave up some of its gains, the interest rate market stabilized a bit and here we are. The long-term downtrend is still very much intact and I don’t see that changing.
We get the non-farm payrolls announcement by the end of the week, which will also be a big factor. But really, at this point, it’s not until we break above the 1.06 level that I would be concerned about a downside. And so, I think you have a scenario where traders continue to look for cheap dollars and they’re going to take advantage of that. That’s exactly what I’m doing. I’m pale with exhaustion. In fact, I have no interest in buying euros anytime soon.
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