It’s important to look for signs of exhaustion before considering buying or selling.
- The Euro has been experiencing some ups and downs in the trading session on Friday, leading to a lot of noisy behavior in the market.
- Currently, the EUR/USD currency pair is trading between the 50-Day EMA above and the 200-Day EMA below, causing difficulty for traders to get a good grip on the market.
- However, if the Euro can eventually break out of this range, it’s likely that the market will finally make a big move.
The 1.07 level above is currently a resistant barrier for the Euro. If the Euro can break through this level, it could open up the possibility of moving up to the 1.08 level and potentially even pushing the Euro up to the highs again. However, it’s likely to take a significant amount of momentum to make that happen. Additionally, the recent high that the Euro made was the 50% Fibonacci retracement level from the massive selloff last year. Therefore, it makes sense that traders would defend that level.
On the other hand, if the Euro were to break down below the 200-Day EMA, it’s possible that it could go down to the 1.03 level and even down to the parity level. The parity level is an area where there has been a lot of action in the past, making it an attractive target for those trying to sell the Euro.
It’s important to keep in mind that the European Central Bank is focused on bringing inflation back down to 2%, which is causing some noise in the market. However, at the end of the day, the Federal Reserve will get what it wants, and therefore it’s likely that the US dollar will strengthen as they continue to raise interest rates in that country.
Despite the Euro’s recent rally, traders should exercise caution before stepping in. It’s important to look for signs of exhaustion before considering buying or selling. As soon as signs of exhaustion appear, it’s more than reasonable to fade the move.
The Euro is currently experiencing noisy behavior in the market, making it difficult for traders to get a good grip on the market. If the Euro can break out of its current range, it’s likely that the market will finally make a big move. However, it’s important to exercise caution before stepping in and look for signs of exhaustion before making any trades. Additionally, traders should keep in mind that the US dollar is likely to strengthen as the Federal Reserve raises interest rates.
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