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Published on Nov 2, 2016
The
EUR/USD pair initially surged higher during the day on Wednesday, but
gave back some of the gains as we reach towards the 1.1150 resistance
barrier. The fact that we pulled back suggests that we are going to
continue the longer-term downtrend, as this market has only rallied due
to concerns about the US presidential election. Because of this, it’s
very likely that the market has been overdone to the upside, and the
longer-term downtrend should continue. Because of this, I believe that
we will start dropping towards the 1.10 level below. That is an area
that was massively resistive, and now should be massively supportive.
However, I believe that we could continue to drive to the downside, and
as a result I believe that the problems in the European Union far
outweigh any uncertainty when it comes to the presidential election in
the United States.
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