Euro Continues to Look Sluggish

The Euro has fallen a bit during the course of the trading session on Thursday as we continue to see a bit of noisy behavior. The 1.13 level has been a significant level of both support and resistance multiple times recently, so at this point in time the market would show a certain amount of exhaustion and the fact that we sit just below the 50 day EMA. The 50 day EMA is of course an indicator that a lot of people pay close attention to, and therefore I think is probably only a matter of time before that causes a little bit of resistance on rallies. That being said, if the market were to close above that on a daily candlestick, then it may change the overall trend.

EUR/USD Video 04.02.22

All things being equal, we have the jobs number coming out on Friday, which of course will cause quite a bit of noise in the US dollar. Ultimately, the US dollar is considered to be a safety asset, and that might end up being the best thing to look at in this chart. The downtrend is very much intact, so I think at this point in time it is likely that we will an easier path lower than higher, although you always have to keep the possibility of the other direction possible.

To the downside, the 1.12 level will be support from a short-term perspective, as well as a nice target. If we break down below there, then we will more than likely go looking towards the lows that we recently hit, and perhaps even down to the 1.10 level after that.

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