The Euro has rallied a bit during the course of the trading session on Tuesday but gave back the gains rather quickly as we are starting to see the US dollar fight back during the trading session. Perhaps the Dollar has been oversold of the last 48 hours, but really at this point the most important thing on this chart is that we have broken above the 1.20 handle, if we can stay above there, that of course is a very bullish sign.
EUR/USD Video 21.04.21
At this point, if we can break above the top of the range for the trading session on Tuesday, that would be a sign that we are going to go towards the 1.22 handle eventually. Given enough time though, I think that if you are not in this trade, you can simply wait for a short-term pullback that show signs of support, especially if it is near the 1.20 handle. It is clear that the US dollar is being pounded on, and if that is going to continue to be the case then obviously the Euro will be one of the major beneficiaries.
For what it is worth, that massive explosion during the Monday session started at the 50 day EMA, so that of course is something worth paying attention to going out into the future. I do see a lot of noise above, so it is not going to be easy to get to the 1.22 handle, but if we can take that out then we will more than likely go looking towards 1.23 handle. This is a market that tends to grind quite a bit so keep that in mind as well.
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