Euro Quiet for Thursday Session
The Euro has gone back and forth during the course of the trading session on Thursday in a relatively tight range. There is a significant amount of resistance above, so I do believe that the Euro is going to struggle to continue going higher. It is not to say that we cannot, it is just that there is a lot of noise between here and the 1.12 handle. Speaking of the 1.12 handle, we also have the 50 Day EMA slicing through that level and falling.
EUR/USD Video 18.03.22
That being said, I am looking for signs of exhaustion to get short again, due to the fact that the US dollar is the favored currency when you have a global slowdown, and we most certainly are going through the midst of that right now. I think at this point in time, it is likely that we will continue to see a lot of noisy behavior, but I am not going to be sucked into buying this pair until we get well above the 1.12 handle. It is a matter of volatility and choppy behavior, which typically does not portend strength, and clearly, the European Union has a huge list of problems, not the least of which is a war in Ukraine.
Europe has to worry about energy, and it has to worry about business sentiment which has fallen through the floor. Inflation is an issue, and of course, the interest rate differential between the two economies continues to favor the United States anyway. In other words, it is going to continue to be a market that you wish to short, not by. That being said, I would like to see a little bit of a better price on the US dollar to start shorting.
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