Euro continues to look for a reason to rally against many currencies on Thursday, as we are starting to see more risk appetite enter the markets in general.
The Euro has risen against the Swiss Franc during the trading session early on Thursday, as we continue to see a lot of consolidation. The 200-day EMA sits just above current levels and just below the recent barrier at 0.9265. Short-term pullbacks I think continue to be buying opportunities with the 0.92 level as a floor.
All things being equal, this is a currency pair that I think is going to move with risk appetite, as the Swiss Franc, of course, is a safe currency. With this, I like the idea that you buy dips, and you get paid at the end of every day because of the interest rate differential.
The Euro has pulled back slightly against the Japanese Yen, but it is flagging. It looks a lot like a market that is trying to eventually go much higher. The 188 Yen level seems to be a bit of a barrier. If we can get above there, then I think we can truly take off. 190 Yen would be my next target. 185 Yen at this point is your absolute floor, and again, it’s a positive swap as well, so that certainly helps.
The Euro has been somewhat choppy against the British Pound as we’re sitting just above the 50-day EMA. It looks like the market is just hanging around the 0.87 level. This is a pretty quiet market most of the time anyway, so this is not a huge surprise.
To the upside, I see the 0.8750 level as a bit of a barrier. Underneath, we have the 200-day EMA at 0.8668 as support, followed by 0.86. We have been range-bound for a while. I suspect we will probably stay in a range overall.
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Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.