Euro Pulls Back Towards Previous Resistance Barrier
The Euro has shown itself to be a bit soft during the trading session on Tuesday to reach down towards the 50 day EMA and perhaps more importantly, the area we broke out of from the previous consolidation area, which of course had been building pressure to the upside. At this point, it will be interesting to see whether or not we can continue to find interest in this area, because if we do, we can then see this market go a bit higher, this of course would be a simple “breakout and retest of previous consolidation.”
EUR/USD Video 19.01.22
It will be interesting to see how this plays out, but I would not jump in right away. I believe that by the end of the day we should have a clear signal, and if we can stay above the 1.13 level, we should see a certain amount of buying pressure, but obviously with the markets being so out of control when it comes to fear recently, you cannot bank on anything right away.
With this, a little bit of caution and a lot of patience probably goes a long way. The question now is whether or not we focus on interest rates rising in the United States, or the fact that the Federal Reserve seems to be hell-bent on tightening into a slowdown, which almost certainly will cause a recession. On the other hand, the ECB seems less likely to tighten, which could allow for growth in the EU if they can knock it off with locking everything down.
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This article was originally posted on FX Empire
