The Euro has shown itself to be somewhat resilient as we have turned around during the trading session on Wednesday after initially dipping lower. The 1.20 level above is probably the next target, so as it is a large, round, psychologically significant figure, and an area that we have seen action at previously. Because of this, I think we will go back to that area to try to retest it, and perhaps even try to break above there. Pay close attention to the US Dollar Index, as it is highly correlated to the Euro as it is the biggest component.
EUR/USD Video 24.06.21
Looking at this chart, I do believe that it is only a matter of time before we have to try some type of move to the upside as the Euro had been oversold, and quite frankly Jerome Powell and the rest of the Federal Reserve are already starting to walk back some of the hawkish talk of last week, which is essentially what sent this market spiraling. As long as they continue to be relatively dovish, it does make a certain amount of sense that this pair ends up recovering right along with everything else.
At this point, we would have to break down below the 1.1830 level for me to start selling again, at least in the next 24 hours. If we can break above the 1.20 handle, then it is very likely we go looking towards 1.2150 level. I expect volatility and choppy behavior, but I also expect more or less a positive attitude overall for the next several weeks. Ultimately, this is a market that could be offering a nice short-term trade to the upside.
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