The Euro has gone back and forth during the course of the trading session on Wednesday as we continue to flirt with the 1.20 handle. This is a market that obviously will be very noisy in general, as we are waiting to see the jobs number on Friday determine the next risk appetite situation appears. In that scenario, and the fact that the 50 day EMA sits just below I think that we are probably going to kill time over the next couple of days, simply grinding back and forth instead of making any major move. This being the case, I would anticipate that this market is going to be very boring over the next couple of days.
EUR/USD Video 06.05.21
That being said, if we were to break down below the 50 day EMA then it is likely that we go chasing the 200 day EMA underneath, which of course attracts a lot of attention. Ultimately, the market is going to continue to be very choppy overall, and I do think that what we are looking at is a market that is probably a short range bound trading type of opportunity if that. On the other hand, if we break above the 1.2050 level, then it is possible that the market could go looking towards the 1.2050 level above.
All things being equal, I do not really have any interest in this area, so am waiting to see whether we get some type of momentum that we can follow. If we do not, then I will simply stand on the sidelines as this pair does tend to be very choppy in general.
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