Euro Continues to Show Choppy Behavior

The Euro has fallen a bit during the trading session on Wednesday to show signs of hesitation again. If we break down below the bottom of the hammer from the previous session, then it is likely that we could continue to go much lower, perhaps reaching the 1.0850 level. The market will continue to be very noisy, but it is still very much in a significant downtrend.

EUR/USD Video 24.03.22

Rallies at this point in time should continue to see significant selling pressure, as the European Union continues to have an entire cluster of major issues facing it. We have the war in Ukraine, energy issues on the continent, a lack of growth, and of course the bond rate differential between the United States and Germany continues to favor the dollar.

Looking at this chart, you can also make an argument for a bit of a rising wedge, or perhaps even an ascending triangle. This shows you just how confusing the market is right now, and of course how confused it is. The 1.12 level is an area that I think is your ceiling in the market at the moment, and it would take a big move above there to get me interested in buying the Euro.

As things stand right now, I like the idea of fading short-term rallies or selling a breakdown. Either way, I have no interest in buying anytime soon and would need to see a complete turnaround in the overall fundamental layout and attitude of not only this market but the markets overall. As things stand, I believe we go lower before we go higher.

For a look at all of today’s economic events, check out our economic calendar.