The Euro has rebounded a bit after falling early on Tuesday as the Ukraine/Russia tension continues to wield enormous leverage.
The Euro fell early in the trading session on Tuesday but then turned around to bounce higher, with the 50 day exponential moving average above acting as resistance. We are now in the same region where we have seen a lot of noise in recent sessions so it looks like there will be trouble moving up.
In any case, the important thing is that the US dollar will continue to outperform the euro as we continue to see an economic slowdown globally, so as long as it holds I expect the pair to go lower in the consolidation zone.
It should also be noted that interest rate expectations are high for the US dollar, while the European Central Bank is only now beginning to consider the inflation issue, so traders are already pricing in price hikes. Fed interest rates. All this information will obviously continue to generate erratic movements, although we will surely remain more stagnant than anything else, as usual in the euro. Also the 50 day exponential moving average is just above and that reinforces the idea that we could move sideways.
As for buying, I don't like the idea in the short term because above we have a double high on the chart that will act as a wall of resistance that is very difficult to break through, and I also think that sellers are going to enter every time they see increases. Finally note that if we break below the 1.1290 level it will open the door for a move towards 1.12 given enough time.
Posts
0 Comments