Euro Continues to Attempt Building Base During the Week

The Euro has fallen a bit during the course of the week, but it does seem as if there are significant buyers underneath to try to lift this market. You can see I have a little bit of the lavender box drawn on the chart to suggest where consolidation may end up taking place. The question is whether or not we can form a big enough base to turn this thing around, or are we simply looking at a situation where we have a lot of noise and no real overall direction? I think at this point in time it does make a certain amount of sense to think that the only thing you can probably count on is a lot of choppy behavior and that typically means you will be paying attention to shorter-term charts.

EUR/USD Video 24.01.22

However, if the weekly candlestick breaks above the 1.15 handle, then it is likely we go looking towards the 1.16 level. That is an area that we had seen a lot of selling pressure at, and it is worth noting that the 200 and the 50 week EMA indicators are both there as well. Because of this, I would anticipate that there should be a little bit of a fight. It is obvious that every time we break down, there are buyers willing to come in and try to pick this thing out, so the question now is whether or not that can continue to hold? I do not necessarily know if it can or will, but it certainly looks like they are trying to fight hard and turn things around. Establish something in that general vicinity. If we break down below the 1.12 handle, look out below.

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