The Euro continues to rally during the trading session on Thursday, reaching towards the 1.10 level. That being said though, it is a large, round, psychologically significant figure and you could probably make a significant argument that the pair is a bit overextended. That being said, the 1.10 level will cause a certain amount of interest. The 50 day EMA is also sitting just in the same neighborhood so there is a bit of technical resistance to be had also.
EUR/USD Video 27.03.20
While the candlestick was rather impressed so, the reality is that the European Union also has a huge amount of negativity around it as well, so this is essentially going to be a fight between a couple of hurting economies. Furthermore, it comes down to whether or not there is more of a “risk on” or “risk off” type of scenario out there for traders to focus on. The pair has been in a downtrend for a couple of years, so there is still a certain amount of negativity around it that will continue to plague the overall attitude of the pair anyway. I think at this point we are probably looking at an area that could be shorted, because quite frankly if it fails then the 1.11 level features the 200 day EMA and yet another opportunity to sell. As long as there is a significant amount of fear the market and massive concerns with the European Union, I’m not a big fan of owning Euro at this point. That being said, this pair is typically choppy anyway so don’t be surprised by the back-and-forth movement.