The Euro rallied a bit during the trading session on Friday but has given back some of the gains to show less than impressive bullish pressure. The 1.1830 level was previous support that now looks to be resistance. Furthermore, the 200 day EMA sits right there so it would make a certain amount of sense that we would continue to go much lower. Because of this, I like the idea of fading short-term rallies, as it gives us an opportunity to pick up “cheap dollars.”
EUR/USD Video 29.03.21
The Euro will continue to sever at the hands of lockdowns in the European Union, and of course the lackluster economic recovery to begin with. Furthermore, the United States continues to see better than anticipated numbers, while the yields in America are much more positive than the ones we see in countries like Germany. After all, you can get 1.65% yield on the 10 year in America, or you can get a -0.34% yield in Germany. Because of this, it is likely that we will continue to see more money flow towards America and away from the European Union.
As we had broken through such a clear support level, it now looks as if we are going to go towards the 1.16 handle. 1.16 handle is an area where I will be paying attention to, because it had previously been supportive. If we break down below there, then I believe that we fall to the 1.15 level rather quickly. If we break down below there, then the Euro is going to fall rather hard. Regardless, I do not have any interest in buying this pair as it stands.
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