Euro Trying to Recover Again
The Euro has gone back and forth during the course of the trading session yet again on Friday, showing signs of trying to recover. Whether or not we can is a completely different question, but I am using the 50 day EMA as a bit of a marker as to where we are going. If we can get above there, then I think the Euro has a good shot at recovering. If we do not, then it is likely we go looking towards the 1.1225 level, which is an area that we have seen act as support more than once. If we break down below there, the market is likely to break down and reach down towards the 1.10 level. That of course is a large, psychologically significant figure, and therefore I think a lot of people would pay close attention to it.
EUR/USD Video 24.01.22
On the other hand, if we do break above the 50 day EMA on a daily close, then the market is likely to go looking towards the 1.15 level above, which is also a psychologically important level, but it is also an area where we have seen a lot of resistance previously. Ultimately, this is a market that I think has to make some type of explosive decision and with all of the confusion out there, it is difficult to think how this market will not make a big move once we get the slightest amount of certainty. In the meantime, you are probably going to continue to see a lot of noisy behavior so keep your position size reasonable to protect your account.
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This article was originally posted on FX Empire
