Euro Finally Breaking Out

The Euro finally made a decision during the day on Wednesday after the CPI number in America came out as anticipated because of this, the market is starting to reprice the idea of the US dollar as it is losing strength across-the-board. That being said, this is a market that looks very likely to continue to go higher, as we have pierced the 50 day EMA and perhaps more importantly the 1.14 handle. Whether or not we shoot straight up in the air is a completely different question of course, but at the end of the day this is a market that has been slowly grinding higher and therefore “whispering” that it wants to go to higher levels.

EUR/USD Video 13.01.22

When I look at this chart, the 1.15 level will probably offer a bit of psychological resistance, but at the end of the day the real resistance is probably found at the 1.16 level above, where we had seen a lot of selling pressure. With that being the case, I think you have a situation where the buyers will come in on dips to take advantage of any hint of value going forward. That being said, if we were to turn around a break down below the 1.1350 level, that would be very negative for this market. I do not necessarily see that happening anytime soon, so therefore I think we are going to see a bit of a trend change, and I think a lot of people are starting to wake up to that possibility as well.

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