The Euro has rallied towards the 1.10 level during the week but then pulled back rather quickly. Ultimately, this is a market that has seen a lot of volatility in this 200 point range, and it is likely that it will continue to see more. The 1.08 level is an area that is worth paying attention to, due to the fact that is the beginning of a major support “zone” that extends down to the 1.0750 level. Ultimately, the noise should continue to be something of a major factor in this pair, as there are a lot of crosscurrents that will continue to push the US dollar and the Euro around.
EUR/USD Video 25.05.20
On one hand, you have the Federal Reserve doing everything he can to bring down the value of the US dollar, but the European Central Bank is now in the business of buying corporate debt as well. Beyond that, there is a lot of confusion as to how the European Union gets out a bit stagnant growth cycle, so pay attention to that as well. I think that this market has nowhere to be anytime soon, so it continues to favor short-term trading above all else.
I think that the market is likely to see a lot of choppiness going forward, which of course is typical for the currency pair. That being said, the market is likely to see a lot of nice short-term setups at the extreme of the ranges, so that is essentially how I am playing this market. For a longer-term move, I would need to see something rather impressive.
This article was originally posted on FX Empire
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