The Euro has rallied a bit during the trading session on Monday, as we continue to go back and forth in a very tight and uninspiring range. Quite frankly, if you are looking to scalp a few pips, you can probably get it in either direction here, but at the end of the day if you are looking to pick up big gains, this will be the pair for you. The 1.0750 level underneath looks to be massive support, while the 1.09 level above is significant resistance. Furthermore, it is essentially a fight between two very soft central banks so it will be interesting to see how this plays out longer term, as the ECB is doing everything it can to prop up the European economy, including buying a lot of corporate debt, which the Federal Reserve has started to get in on as well, through backdoor channels.
EUR/USD Video 19.05.20
The 50 day EMA is just above and sloping lower, suggesting that we are going to fall from here as well. Ultimately, I think this is a market that probably sees more choppiness than anything else as the market has nowhere to be anytime soon. High-frequency traders have overtaken the EUR/USD pair, making their profits in 0.001% increments at a time, and therefore makes it almost impossible for the retail trader to make any real profits in. Unfortunately, this is the same thing that has happened in the futures market, making it a battle of algorithms more than using a market for price discovery. All things being equal though, the trend longer-term is down, so if I were forced to trade this pair, I would be shorting rallies.