The Euro initially tried to rally during the trading session on Wednesday but found the 1.19 level as a bit too resistive to continue going higher from. At this point, the area looks to be massive resistance that extends to the 1.20 level, something that we have already seen. I suspect that a pullback is coming, perhaps reaching down towards 1.18 handle, followed by the 50 day EMA. Whether or not we can break down to the bottom of the overall range which starts at the 1.16 handle is a completely different question, but one thing is for sure, this market does not seem to be ready to break out.
EUR/USD Video 19.11.20
That makes quite a bit of sense because the European Union is starting to close down some of its member states and of course the coronavirus is raging through that part of the world. The United States is not going much better though, so that is part of what keeps this market so choppy. Ultimately, I play the range until the range is broken and at this point in time it looks like it is going to hold right where it has been. With that in mind, I prefer shorting this pair right now, but for a smaller move. I do not necessarily think that we are going to collapse suddenly, just as I do not think that we are suddenly going to take off straight up in the air break above the 1.20 level.
That being the case, I would anticipate that this market is a little bit heavy at the moment, so therefore shorting opportunities on short-term charts probably make the most sense.
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