EUR/USD Rate Eyes 2020 High as RSI Threatens Downward Trend – Why is this the Case? The EUR/USD Rate Eyes 2020 High is a symptom of a deeper trend for the currency. A downward trend in the USD is often a sign that the USD is going down as well.
As the Dollar falls, the EUR/USD Rate Eyes 2020 High will likely be reversed. For example, if the USD moves down by 20%, the EUR/USD will most likely break above the 1.20 support level, signaling an upside break on the EUR/USD Rate Eyes 2020 High. This is how technical traders play their favorite market, with risk to gain.
The European Union is looking at a recession which has the potential to affect its citizens and the world in general. The EUR/USD Rate Eyes 2020 High could signal investors will now take profits from the weakening Euro and move it up to support the EUR. If the Euro drops further, then the EUR will likely reverse the upward
trend and the EUR/USD Rate Eyes 2020 High will be reversed as well.
The European Union and the United States are currently in negotiations on a new trade deal known as the Transpacific Partnership. This agreement could have profound effects on the currency markets, so investors need to be aware of the implications. If the United States and European Union to come to an agreement with the rest of the world, then the currency markets are likely to have a major effect on the market.
If the trade deal is implemented, the Euro could become more popular than the US dollar. At the same time, as more people opt to use the Euro as their currency of choice, the Euro will likely experience less currency depreciation than the USD.
The US dollar may also continue on its downward trend. If the dollar is going down, then the EUR/USD Rate Eyes 2020 High is probably due to the Dollar depreciation. If the Euro continues on its upward trend, then investors are likely to buy the EUR in order to get the USD back up to its highest possible support level.
Investors who can buy both the EUR and the USD should be able to make quite a nice profit, although it may take some time for the EUR to reach the highs of last year and the US dollar to move upwards again. A few months ago, many investors were surprised when the EUR/USD Rate Eyes 2020 High reversed from the lows reached during the spring, but it was only a temporary reversal.
The currency markets tend to follow the trends that cause them to rise and fall, so investors need to be careful about making quick decisions based on just one chart. It may take a few weeks or months for the EUR and the US Dollar to reverse before you realize you got ahead of yourself.
If the United States and European Union fail to come to an agreement on a trade deal, then the Euro may become more popular than the US dollar. If the European Union comes to an agreement with the United States on tariffs, then the Euro may depreciate more. On the other hand, if the European Union manages to come to an agreement with the United States on a free trade agreement, then the Euro may appreciate even more.
If the Euro is able to maintain its current strength, then investors will be able to gain benefits by buying the EUR when the market is bearish and selling the EUR when the market is bullish. by placing long calls on both the EUR/USD and EUR/JPY. in anticipation of the Euro appreciation and short calls on the EUR/USD in anticipation of a EUR depreciation.
The EUR/USD Rate Eyes 2020 High is also expecting to reverse if the European Union has a trade deal with the US, which would greatly benefit US exporters. It will probably also reverse if the Euro falls towards the bottom of the Forex charts and fails to achieve a breakout from the resistance levels that were formed during last summer.
When the EUR and the US dollar are able to break out of resistance levels, then the EUR will likely continue to move higher in anticipation of a reversal into support at around 1.2030 and the EUR/USD Rate Eyes 2020 High will likely be re-established? If the Euro fails to break out of the resistance levels that formed during the spring, then a bounce will occur around 1.3200, followed by another reversal to support around 1.3500 and a continuation of the EUR/USD Rate Eyes 2020 High.