Euro Continues to Go Back and Forth in Order to Build Rally

The Euro has gone back and forth during the course of the trading session on Thursday as we continue to see a lot of back-and-forth noisy behavior in the Forex markets in general, and of course we are starting to ask questions as to whether or not we are seen support in this general vicinity. After all, we had broken out from just above here, but we also have the 50 day EMA sitting just above. That lends itself to the question of whether or not this was a false breakout, or if we finally build up enough pressure to go higher?

EUR/USD Video 21.01.22

As for myself, I see much better set ups but if we do break out above the 50 day EMA on a daily close, then I would be more convinced of the idea of this market going higher. It is worth noting that there is a bit of an uptrend line sitting underneath, and therefore the triangle has in theory at least held. If we break down below the 1.1250 level, that could spell trouble for the Euro and send it down to the lows again, possibly even down to as low as the 1.10 level underneath.

I think the only thing that you can do at this point in time is just watch the US dollar in general, as the Euro is quite often thought of as the “anti-dollar”, and therefore it makes quite a bit of sense that we would see it move counter to what the greenback does overall. The Euro is not necessarily strong, but the US dollar seems to be losing little bit of ground to the fact that the German Bund is trying to go positive with yields for a longer-term move.

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