Euro Continues to Reach Towards 50 Day EMA

That being said, it does look like we are hesitating a bit so be interesting to see whether or not we can continue this parabolic move. Quite frankly, we have gotten ahead of ourselves so little bit of a pullback makes sense regardless of whatever direction we go longer term. We have the European Central Bank meeting on Friday, which of course can have a lot to do with where we go next. I think given enough time; we will get a little bit of clarity, but it should be noted that the ECB is nowhere near tightening.

EUR/USD Video 03.02.22

We have had three strong candlesticks in a row, but quite frankly we are still in the midst of a major downtrend, so it is a little bit difficult to get overly excited at this point. The US dollar will continue to strengthen if we see any type of “risk off” type of behavior around the world, and I certainly think that there are a lot of things moving right now that could cause some issues. If we break down below the bottom of the candlestick for the trading session on Wednesday, it is likely that we could go looking towards the 1.1150 level underneath.

A lot of this is going to come down to what the ECB has to say, because if they do sound especially dovish, that could send this market much lower. Keep in mind that Friday is also the jobs number coming out of America, so things could get rather noisy in short order during that particular trading session. With this in mind, I still am looking for an opportunity to short this market until we break back through the lavender box on the chart.

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