Euro Recovers at 50 Day EMA

The Euro has fallen a bit early during trading on Friday, only to turn around and bounce from the 50 day EMA in order to show a bit of support. That of course is a good sign, so be interesting to see whether or not the Euro can hold these levels. If it does, then it suggests that we have quite a bit of consolidation ahead of us, and that the markets are simply killing time at this point. I would anticipate that is the likeliest of moves, considering how much support and resistance we have seen in such a tight range over the last several days.

EUR/USD Video 14.02.22

That being said, the 1.15 level above is a significant psychological and structural barrier, so it does suggest that it is going to cause quite a few problems. If we were to be able to break above that level, we have historically seen a lot of noise between there and the 1.16 handle. Because of this, I think that any move higher is probably going to be more of a grind than anything else.

On the other hand, if we were to break down, I think that we could very well go looking towards the bottom, as we continue to look like a market that is trying to carve out some type of larger consolidation range. We recently formed a potential double top, which is something that has to be paid close attention to. As we head into the weekend, it seems like exhaustion is the key word.

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