Euro Bounces Significantly

The Euro has rallied significantly during the course of the trading session on Monday to reach towards the 1.12 handle. At this point, this is what I would consider to be an oversold bounce, so I think that given enough time we will get an opportunity to short this market. Having said that, we have not seen the exhaustion necessary quite yet, but it is almost certainly coming. At the first signs of trouble, I am more than willing to short this market as the Euro looks horrible longer term.

EUR/USD Video 01.02.22

Sometimes we need to simply wait for signs to get shorter of a position, and that is what I will be doing. We have the jobs number at the end of the week that could also come into play, but we also have the ECB speaking. Once they reiterate their quest to keep monetary policy loose for the rest of everybody else’s lives, it is likely that we will see the Euro dropped again.

To the upside, the 50 day EMA is starting to drop lower, and therefore it is likely that it will be a massive barrier to overcome, but quite frankly if we rally as high as the 50 day EMA, you have to start to question whether or not we are going to see continuation. I have no interest in buying this pair quite yet, so let us take a look and wait for signs of exhaustion. There are so many potential resistance barriers this week that I think we will get our opportunity if we are patient enough.

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