Euro Volatile Near 50 Day EMA

The Euro has been back and forth during the trading session on Thursday, as we continue to see a lot of “risk on/risk off” type of trading. We currently see the market hanging around the 50 day EMA which may be causing a little bit of technical noise, but at the end of the day it is more likely that we are simply seen a lot of confusion more than anything else. Keep in mind that the Euro may be especially sensitive to the latest rumors about the situation in Ukraine, as Europe may bear the brunt of the problems.

EUR/USD Video 18.02.22

With this being the case, it is very likely that we will continue to be very noisy. I believe that the “double top” that formed up at the 1.15 level is still going to be a formidable barrier to overcome. Because of this, I would be very cautious, but I do think that you may get a nice shorting opportunity if we do in fact pop from here. To the downside, if we take out the lows of the day it is likely that we will try to break down through the 1.1290 level and go looking towards the 1.12 level underneath. That is an area that could be rather supportive, and if we were to lose it, that really could get the sellers to become aggressive. Typically, the Euro is somewhat choppy anyway, so all of this action should be of no surprise to you. Given enough time, we may get clarity, but it is not going to happen in the next few days.

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