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The Current EUR-USD Price Action is Not Surprising

By Glenford S Robinson

The US Dollar is acting the way we would expect it to act as a result of an imminent interest rate cut on July 31, 2019. Forex Traders and US currency investors are currently pushing the US dollar up in anticipation of a rate cut, just so they can sell the currency and make a profit. New Forex Traders must be cognizant of such tactics.

The only reason why a currency goes up is because currency market participants intend on bringing the currency down by offloading it to forex traders who don’t understand the game. As an entrepreneur or a business owner, you only buy products at a lower price in order to sell it at a higher price.  So, why then would you be in business?

The approach is to avoid over leveraging and stick to your trading plans if your trading plans are logically correct. The idea is not to lose more than you gain in profits. It is understandable as a trader that you might sometimes lose some trades, but keep losing trades to a minimum while keeping winning trades to a maximum.

The moment the decision by the Feds to cut US interest rate is announced on July 31st, the US dollar will begin tumbling faster than a lightning thunder bolt. This is how the game is played. So, if you don’t understand the game, it is time to learn it.

The EUR/USD currency pair is currently hovering around the 1.1150 calculated zone that was calculated using historic data ending on March 5, 2019. There is a strong possibility that the 1.1150 area could serve as a strong support area strong enough for a reversal to the upside. In fact, all our researched data is signaling a reversal to the upside from the 1.1150 area. There is a 34% chance that the pair will reverse from the 1.1150 zone to the upside. This inference is currently supported by the current strength of the buyers located at the 1.1150 support zone which is pretty strong.

If our upside analysis doesn’t come to past, then the next downside target for the pair could be at the 1.1097 calculated support zone. There is also a 47.5% chance that the pair could go down toward the 1.1097 area; but then again, this is highly unlikely simply because the Euro is extremely oversold, and this oversold condition could be what’s causing buyers to slowly come back into the market.

Buyers could in fact be influenced by the fact that the US Existing Home Sales data came in lower than previous readings. Although the market didn’t react to that announcement at 10am today 7/23/19, the market could finally be ready to react to this Existing Home Sales announcement. This could be why the support area at the 1.1150 mark is being respected.

We don’t have a crystal ball, so we don’t know for sure what will eventually happened in the next few hours to the end of the week. We can only make educated guesses using statistical inferencing as to what we think might happened.

Disclaimer: Trading the Forex Market is highly risky. Traders could lose all funds deposited in a trading account. Therefore, before trading the Forex Market, please consult with a certified investment advisor. Mstardom Finance and its parent company Mstardom, Inc., and writers do not provide investment advice.

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