- The EUR/USD has fallen below the 1.10 level during Monday's trading session, and the market continues to see a lot of noise.
- However, despite this, many traders see this as an opportunity to get long as the market offers some value.
- Although there is a lot of fear in the market, traders are still negative on the US dollar, and most believe that the Federal Reserve will do everything in its power to bail out the system, including loosening monetary policy again.
- This could lead to a situation where value hunters will come back into the market over time, but a bounce is needed before going long.
If the market breaks down below the 1.09 level, then it could race towards the 50-Day EMA underneath, which is closer to the 1.08 level. This could provide some support for the market, as it has been rising, and a lot of traders will be looking to get long at this level. It's important to note that the pair has been overbought for some time, and a pullback could help buyers pick up some momentum.
While it's likely that we will eventually see a turnaround, it's not expected to happen just yet. The market has bounced significantly from the 200-Day EMA, which has attracted a lot of longer-term money. Nonetheless, there are still many concerns when it comes to the Federal Reserve loosening monetary policy to help the global financial situation. As such, traders will need to exercise patience and wait for the right opportunity to go long.
Be Patient and Cautious
If the market continues dropping, it could potentially drop all the way back down to the 200-Day EMA. It's important to keep an eye on this level and be prepared to act if the market reaches it. All things considered, there is a lot of noise in the market right now, and it's important to exercise caution and wait for the right opportunity to present itself.
Ultimately, the Euro fell below the 1.10 level during Monday's trading session, and the market is seeing a lot of noise. Traders are still negative on the US dollar, and most believe that the Federal Reserve will loosen monetary policy again to help the global financial situation. While there is a lot of uncertainty in the market right now, there will be opportunities for traders to go long in the future. However, traders must exercise patience and caution and wait for the right opportunity to present itself.
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