Euro Pulls Back Toward Support

The Euro has pulled back a bit during the trading session on Monday, showing signs of testing the 50 day EMA. The 50 day EMA of course is an indicator that a lot of people will pay attention to, so it is most certainly worth looking at. Starting to curl higher and is sitting on top of the previous consolidation area, so it does make a certain amount of sense that traders would be interested in this region. Whether or not it holds remains to be seen, and you can only read so much into the Monday candlestick due to the fact that it was Martin Luther King Day and the United States, meaning that Americans were essentially not at work.

EUR/USD Video 18.01.22

To the upside, if we can break above the top of the candlestick for the trading session on Monday, it is very likely that we will go looking towards 1.15 handle, which is a large, round, psychologically significant figure, and then eventually the 1.16 level above where we had seen such a massive selloff previously. That being said, the market looks very likely to continue to see the 1.1375 level underneath is possible support as it had been previous resistance in our nice consolidation area.

All things been equal, this is a market that I do believe eventually finds a decision made, probably on Tuesday that could have ramifications for the next several sessions. All things being equal, pay attention to the US dollar overall, because of this is the closest thing to the US Dollar Index that a lot of you can trade. In general, this is a market that is probably ready to make a bigger move.

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