The Euro has been somewhat positive during the day on Wednesday, as the markets are still in the middle of a larger range.
The Euro was very choppy and noisy as usual during the trading session on Wednesday. With that being the case, we need to think about the 50-day EMA as some type of technical barrier.
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We also need to look at the bigger consolidation area, and the fact that we're basically in the middle of it tells me this is what they call in certain sports a medicine ball, meaning that two forces are going to collide and somebody's going to get hurt. I think that's where we're at now.
The US Dollar has been resilient, and despite the fact that it's a little bit negative during the trading session on Wednesday, I see nothing on this chart that tells me it's going to be any different.
Key Range and Technical Levels
The Euro truly isn't going to break free until it gets above the 1.1850 level, and the US Dollar's not going to truly break free from the Euro until it breaks below the 1.14 level. I look at this as a nice range-bound opportunity for those who are willing to take swing trades over the next couple of weeks.
At this point, if we were to break above the highs of the Monday session, that would be a strong sign that we may retest the 1.18 level again and would constitute a higher low and one that would be worth watching.
If we break down from here, the 200-day EMA, which is basically 1.15, is the beginning of the support that runs down to the aforementioned 1.14 level.
I do believe that the ECB is on hold, and I don't think they've got any reason to cut or hike or do anything, while the Federal Reserve may be a little bit hesitant to do so, part of which is making the US Dollar somewhat resilient. Short-term back-and-forth trading is what I see here.
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