Christopher Lewis
Add to Bookmarks

The Euro has been slightly positive during the trading session on Monday as we have respected the 1.20 handle as support. Furthermore, we also have the 50 day EMA underneath offering significant support, so I do think that it is only a matter of time before buyers would come in and try to pick this market up. In fact, we have seen the market rally 50 pips, so that of course is very bullish. With that being the case, it is likely that we will continue to try to grind towards the top of the Friday selloff. The selloff was relatively important, but it just shows signs of exhaustion. At this point in time, it is likely that we will continue to see the market try to go higher but it is obviously very erratic at this point.

EUR/USD Video 04.05.21

If we do break down below the 50 day EMA, that would be a very negative sign, probably opening up the Euro for a drop down to the 200 day EMA. All things been equal though, the market had gotten a bit over bought, so this pullback on Friday certainly made quite a bit of sense. Looking forward, the market looks more likely than not to go reaching towards the 1.2150 handle, perhaps even the 1.22 handle. In general, this comes down to the US dollar more than anything else as well, so that of course will have its influence. A little bit of Federal Reserve speak during the Friday session was a main culprit, so it was almost certainly overdone as the Federal Reserve is light years away from doing anything close to tapering monetary policy.

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