Euro Has a Volatile Week

The Euro has been all over the place during the week as we continue to see a lot of concerns. Ultimately, this is a market that I think continues to try to find its footing, but frankly, there is not a lot out there to pick the market up right now. Because of this, I think this is a market that will continue to favor the downside, but I do not necessarily know if we are simply going to fall apart and break through the bottom. I think it is more likely that we continue to see more choppy behavior, and therefore I think longer-term traders are going to struggle with any type of clarity.

EUR/USD Video 14.03.22

That being said, if we were to break above the 1.12 handle, then the market could go looking towards the 1.15 level, which would obviously be a very bullish turn of events. This could be helped by the Federal Reserve and its statement if it is not as hawkish as people had anticipated. However, if they are every bit as hawkish as people had anticipated, then it is possible that the Euro goes looking towards a 1.08 level over the longer term.

If we break down below that level, then the Euro will continue to break down rather drastically. That being said, it is more likely than not that we simply chop around and try to figure out where to go for the bigger move. After all, we just plunged lower in the last two weeks, and the Euro does tend to go sideways more than anything else. I expect more of the same behavior in the short term.

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