FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks

The Euro has been very choppy during the trading session on Thursday as the ECB had a meeting. At the end of the day though, this is a market that tends to be choppy regardless so that probably would have been nothing more than the excuse for the day. The pair does tend to be very noisy in general, and the fact that we are sitting just above the 1.20 level could keep this market very tight, but it is worth noting that we have been rising quite nicely over the last several weeks, so I do think that we are trying to turn things around, at least in the short term. This leads for a potential target of 1.22, possibly even 1.23.

EUR/USD Video 23.04.21

However, if we were to turn around a break down below the 50 day EMA, then I would have to think that the selling pressure would probably send this market down to the 200 day EMA rather quickly, and then possibly even down to the 1.16 level underneath there. That is an area that is massive support, so I do not expect this pair to break through there anytime soon, and it is worth noting that it would take a lot of destruction to even get there so I suspect that we have more of a choppy market with a general upward bias than anything else going on right now. Because of this, I suspect that a “buy on the dips” type of mentality will probably be used by short-term traders, as it looks like we are probably going to spend the next day or two trying to figure out where to go next.

Advertisement
Know where EUR/USD is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker