Christopher Lewis
Add to Bookmarks

The Euro has rallied a bit during the trading session on Monday to kick off the week on positive footing. That being said, the market is very likely to continue seeing noisy behavior but as we approach the 50 day EMA earnings season starts to come into focus on Wall Street, so if there is more of a “risk on” type of attitude we may see the Euro get a little bit of a bid, despite the fact that the US look stronger. This is simply based upon the “good news is bad and vice versa” type of attitude that Wall Street tends to exhibit.

EUR/USD Video 13.04.21

Looking at the chart, I believe that the 50 day being broken to the upside on a daily close could kick off a move towards the 1.20 handle, which of course is a large, round, psychologically significant figure, and of course an area where we have seen action at more than once. With that being the case, I think what we are looking at is a scenario where the market is going to try to break above the 1.20 handle, and if it does that could have this market going much higher. However, if we were to turn around a break down below the 1.1830 level, we are then slicing through the 200 day EMA, looking at a potential move down to the 1.16 handle. Obviously, this pair is typically choppy and noisy, and really difficult to trade for any type of bigger move so you will have to keep your charts more than likely focused on the short-term moves.

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.

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