The EUR/USD pair has broken to the downside again on Friday, slicing through the 1.1775 handle. We have bounced slightly recently, and it looks as if the sellers are looking to get involved so that they can pick up value in the greenback. Keep in mind that the interest rates in the United States continue to rise while bonds in the European Union continue to offer negative rates. Because of this, money is flowing to the greenback, and by extension punishing the Euro.

It looks as if the 1.1825 level is going to offer a bit of resistance here, and as we have recently seen the market roll over from that area. I believe that the market is probably going to wipe out the overall move to the upside that we have seen recently. On the weekly chart, we have broken down below the bottom of a hammer from the previous week, which of course is a very negative sign. I believe that the market participants will continue to look to pick up the greenback whenever they can, as the trend has been so negative.

Ultimately, I believe that we will more than likely continue to see a lot of noise, but ultimately I don’t see any way that this attitude changes in the short term. Sell and sell again continues to be the mantra, and I think that we will eventually see a significant break down yet again.

EUR/USD Video 21.05.18

This article was originally posted on FX Empire

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