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Christopher Lewis
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EUR/USD

The Euro broke above the 1.20 level during the trading session on Monday to show extreme strength. The 1.20 level has been very difficult to get above, so now that we are above it, it looks like we are going to continue to go towards the 1.22 handle. That does not mean that it is going to be easy to get there nor does it mean that you should jump in with a huge position, rather it means that the momentum is almost certainly picking up to the upside at this point.

EUR/USD Video 20.04.21

It is the size of the candlestick is relatively impressive, even more so when you just look at the last few weeks. Because of this, I think that will eventually see this move to the upside, as long as we can stay above the 50 day EMA. The 50 day EMA is underneath the bottom of the daily candlestick, so turning around and breaking through there would of course be very negative. At that point, I would anticipate that the Euro could go down towards the 1.1830 level, which also features the 200 day EMA, attracting a lot of attention.

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This is probably going to be choppy on the way up, but quite frankly that is nothing new as the Euro chops on a daily basis. With this, selling is all but impossible until we break down below that 50 day EMA, but if you are looking for a little bit more in the way of momentum, you may be able to pick up EUR/JPY or something to that effect. Keep your position size relatively small, and then add as the position goes in your favor.

For a look at all of today’s economic events, check out our economic calendar.

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