Yahoo Finanza Euro Gives Up Gains From Friday
The Euro gave up all of the gains it made on Friday during the trading session on Monday to reach down towards the 1.13 level by the time the Americans got on board. Obviously, the US dollar is strengthening against almost everything, and it looks at this point in time like we may see that in this market as well. With the fear around the world and the Federal Reserve tightening, it does make a certain amount of sense that we will see this fall apart. At this point, I would anticipate a move down to the 1.1225 level underneath, possibly even lower than that.
EUR/USD Video 25.01.22
If we were to break down below the 1.12 handle, that would open up a move down to the 1.10 level, something that a lot of analysts think will happen sometime this year anyway. At this point, I cannot argue with that, but I also recognize that if you want to buy the US dollar against a currency and see actual movement on a day-to-day basis, this is not going to be your market.
This market tends to be very choppy and sideways, so at this point in time if I were to trade the Euro, I would do so from a short-term perspective, simply shorting rallies that show signs of exhaustion any time I got the opportunity. With this in mind, I am bearish, and I think the 50 day EMA has been paid close attention to. Much like the British pound, I think we just had a “false breakout.” Ultimately, fear drives markets much quicker than greed does.
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This article was originally posted on FX Empire
