The Euro initially tried to rally during the course of the week, but then broke down significantly towards the 1.19 level. The 1.19 level is an area where we have seen a lot of resistance, and now should see plenty of support. I think you need to look at shorter-term charts to find a buying opportunity though, so even if you are a longer-term trader you need to keep in mind that the entry can be crucial. If we were to break down below the 1.19 level significantly, then we could see a break down towards the 1.16 level underneath where we see significant support.
EUR/USD Video 08.03.21
If we were to turn around and take out the one point to zero level to the upside, that would be a very bullish sign, and even though we have had a very negative week, the reality is that this pair is extraordinarily bullish over the last couple of quarters, and at this point I think one of the biggest things that we are looking at is the 10 year note, which has seen yields rise quite drastically in the United States. That being the case, we need to keep an eye on both of these charts. Currently though, I would not be surprised at all to see a short-term bounce. I become much more convinced in an uptrend continuation above 1.20. All things being equal, I do think that we probably try to get back towards the 1.23 level. However, if the interest rates get out of control in America, that will slam this market a bit lower. All things been equal though, I think we have a market that is going to be very choppy.
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This article was originally posted on FX Empire