The Euro has rallied a bit during the course of the trading session on Thursday to reach towards the 1.1725 region, an area that has been resistance more than once. That being the case, it had previously been support so I think we are trying to carve out a new range at this point. Notice that there are a lot of longer wicks just above, and that of course will suggest a “sell on the rallies” type of scenario. In that scenario, the market is going to continue to see a little bit of trouble in this area, but we are bouncing from an extreme low.
EUR/USD Video 24.09.21
At this point, the question is whether or not we just formed a double bottom? I do not necessarily believe we have yet, but we might be a little oversold at this point. If we break down below the 1.17 level on a daily close again, that would show the market yet again trying to chip away at the support and opening up the move towards the 1.16 level underneath.
If we do break above the 1.1750 level, then it is likely that we could go looking towards the 50 day EMA above, which is sitting just above the 1.18 level. Regardless, the Euro tends to be very choppy overall, as it is the domain of high-frequency traders. We are at relatively extreme lows, so I do think that we have some chopping around to do in the short term. The market breaking down below the 1.16 level could signal a massive selling opportunity, but right now that does not look likely.
For a look at all of today’s economic events, check out our economic calendar.