The EUR/USD currency pair tried to rally during the trading session on Tuesday but failed near the 1.07 level, which is a large, round, psychologically significant figure and an area where we have seen both support and resistance recently. The market has also been bouncing around between the 50-Day EMA and the 200-Day EMA indicators, which means that there is a lot of noise that is going to continue to be a problem.
If the market breaks down below the 200-Day EMA, which is at the 1.05 level, it could open up a trap door to much lower prices, possibly down to the 1.03 level, followed by the parity level. The parity level is an area that will attract a lot of attention due to the fact that it is a level that makes for a good headline number.
Although the last couple of weeks have been very noisy, it is worth noting that it was kicked off by a massive shot lower from the 1.10 level. Jerome Powell is speaking during the session, in front of the United States Congress, which could be a mover of markets, but it looks as if the sellers are going to continue to take hold of this market.
Bearish Bias
- The massive selloff that occurred last year saw a 50% Fibonacci retracement level, and we continue to see more of the same.
- Therefore, it is only a matter of time before the market goes lower.
- However, if the market turns around and breaks above the recent highs, that could change everything; still, it is unlikely that this will happen.
In conclusion, the Euro tried to rally during the trading session on Tuesday but failed near the 1.07 level. The market has been bouncing around between the 50-Day EMA and the 200-Day EMA indicators, which means that there is a lot of noise. If the market breaks down below the 200-Day EMA, it could lead to much lower prices. Although the last couple of weeks have been very noisy, the sellers are likely to continue to take hold of this market. Jerome Powell's speech during the session could be a mover of markets, but it is unlikely that the market will turn around and break above the recent highs. Therefore, the market is likely to continue falling, however uneven in its movement.
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