The Euro has gone back and forth during the trading session on Monday as we trying to disseminate whether or not the US dollar will strengthen, or if we are simply looking at a pullback in order to build up enough momentum to turn things around and reach towards the highs again. With this being the case, the market is likely to see a lot of choppy behavior, but the 50 day EMA is also an area that a lot of people will pay close attention to. However, when things are taken into full effect, the 50 day EMA is starting to flatten out a bit, so that shows that maybe we are trying to stabilize a bit.
EUR/USD Video 15.06.21
To the downside, if we do break down below the last couple of candlesticks, reaching down towards the 1.20 handle underneath. That of course is a large, round, psychologically significant figure and therefore I think a lot of attention will be paid to it. Furthermore, the 200 day EMA is starting to reach towards that level as well, so that of course could offer significant support.
On the other hand, if we turn around and rally, then it is likely that we could go looking towards the 1.23 handle, an area where we have seen a lot of resistance in the past and could open up the possible move towards the 1.25 handle, an area that of course could cause a significant amount of reaction, thereby offering a major barrier. By the end of the year, I fully anticipate that this market probably goes looking towards that area, unless of course we see a complete reversal in attitude.
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