Crude Oil Picks Up, Euro Nears Important Support, Equities Remain Bouyant

Crude Oil Picks Up, Euro Nears Important Support, Equities Remain Bouyant. The recently concluded Trading Day was all about the EURUSD, but at the same time, it was about the prospect of a strong dollar. An important support level was a major catalyst to the day’s action.

Euro Trend Trading Action – A Signal To Ignore? – A Key Resistance Level Targeted? So, it appears that the EURUSD is in trouble, and that even the ECB cannot make things right. Could it be that we are witnessing the start of a global currency war?

The last article stated that the Euro had taken a nose dive on Wednesday. That the index fell off its highs of the last few months and the index was trading around the 85.00 level. Many traders were panicking that the rally had been reversed, and the collapse was looming over them. It was obvious that the rally had been reversed, because the price of the Euro had taken off and was now soaring.

However, there is one thing that you must consider before jumping on the crude oil pick up, EURUSD bandwagon. It seems that the EURUSD index has been doing quite well. However, all of the previous gains have been based on the notion that the US Dollar Index would fall below the 75.00 level.

The crude oil rally has basically crashed, and the price has moved from being oversold at the onset to close to where it started. Now, it is near or even below the levels that were mentioned above. Is this a forewarning of more significant events to come?

Let us start with crude oil prices. It is hard to predict when a drop in the price of crude oil is going to happen. However, some analysts believe that the price could hit its peak in the next couple of weeks.

If this were to occur, it would be devastating for European exporters. Most of the leading Euro exporters like Italy, Spain, Portugal, Greece, Poland, Ireland, Belgium, Belgium, France, etc., would suffer.

If it is confirmed that the Euro will fall below the 75.00 level, then it would certainly affect the outlook for emerging markets. Emerging markets like India, Brazil, Russia, South Africa, Turkey, etc., would take a hit as well. At this point, I would take into consideration that perhaps some of these markets might turn back to support.

At this point, a rising dollar is the only thing that can save the Euro. But it is difficult to predict this. A decisive movement could take place which would make it difficult for a strong dollar to gain control of the market again.

Now, is it time to sell crude oil? Please consider this in 2020.