FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks
EUR/USD

The Euro has rallied a bit during the trading session on Tuesday as we continue to see the US dollar sell off. Because of this, the market is likely to continue to see upward momentum, as the greenback is most certainly on its back foot against almost everything. With that in mind, I think that it is probably only a matter of time before we break above the 1.22 handle, it is worth noting that there was not much of a pullback on Monday. This suggests that there is still plenty of momentum out there to drive this pair higher.

EUR/USD Video 12.05.21

To the downside, the 1.20 level is significant support that I think will continue to hold the market up, as we have the 50 day EMA is sitting in that same vicinity as well. If we were to break down below there, then it could be a sign of further negativity. At that point, I would anticipate that the Euro could go looking towards the 200 day EMA, which sits at the 1.1850 level. At this point in time, I think that people would begin to question the overall trend. You could even make an argument that we have just formed a little bit of a bullish flag, so I think at the end of the day it is likely that we will continue to see upward pressure and eventually break above the 1.22 handle to go looking towards the 1.23 handle. At this point in time, that is the most likely of outcomes based upon the momentum that we have seen lately. That being said, I would expect a bit of a fight just above.

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