Euro Continues Choppy Behavior

The Euro has remained choppy during the trading session on Wednesday as we await the CPI figures in America on Thursday. Ultimately, the CPI figures will give us an idea as to whether or not the Federal Reserve will have to become even more aggressive, or whether or not the central bank will have to become a little bit looser. Quite frankly, we have had the European markets deal with the French central banker suggesting that interest rate hikes are nowhere near, which anybody with a brain understood to begin with. That could be a little bit of negativity for the Euro, and if the CPI numbers are hot, that will send this market right back down and perhaps continue the longer-term consolidation that is potentially setting up.

EUR/USD Video 10.02.22

To the upside, the 1.15 level will cause a significant amount of psychological and structural resistance, perhaps extending all the way to the 1.16 level. It is because of this that I would not be surprised at all to see a little bit of a pullback. To the downside, if we break down below the 1.1390 level, then I think the Euro will go lower. This is all about inflation in America at this point in time, and therefore it is going to be difficult to place any type of trade until we get those inflation numbers coming out Thursday. The question is whether or not it is going to be higher than the consensus of 0.4% month over month, or lower? If it is right on the number then it is likely that we simply just grind sideways in the short term.

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