EUR/USD Forecast May 11, 2017, Technical Analysis

EUR/USD daily chart, May 11, 2017

The EUR/USD pair initially tried to rally during the Wednesday session, but found the 1.09 level to be a bit resistive. There is still a gap on the longer-term charts just below, so I think a fresh, new low, or better yet, a move below the 1.0 and 850 level would be a nice selling opportunity as it gives us an opportunity to fill that gap. With that being the case, I prefer the downside in this pair, but I don’t want to try to front run that move. Even though gaps tend to get filled over the longer term, it doesn’t necessarily mean it should happen anytime soon. Because of this, I recognize that a bit of discretion is probably warranted.

Several resistance barriers above.

I believe that the 1.09 level above will be resistive, and if we rally from here a short-term exhaustive candle could be used to start selling again. I also recognize that a fresh, new low is also a selling opportunity, and quite frankly I don’t have any interest in buying the market after we have seen such a massive breakdown from the initial gap higher after the French elections. It looks very likely that the market has turned around for the attempt to fill the larger gap, and the fact that we sold off so drastically tells me that the market may have gotten ahead of itself and now we are starting to look at longer-term questions when it comes to the European Union. Currently, I don’t necessarily have a scenario in which I want to be going long in this pair, but that could change of course. I will keep you abreast as to what I’m doing in the EUR/USD pair here at FX Empire.

Written by FX Empire