The Euro has fallen significantly on Monday, as the continent dealing with a lack of natural gas from Qatar and the general “risk off environment” is causing the common currency some problems.
Euro
The Euro has fallen pretty significantly during the trading session on Monday as we continue to see a lot of fear out there. Keep in mind that the US dollar is considered to be a bit of a safety asset and it does make a certain amount of sense that we should continue to see the Euro suffer in an environment where one of the biggest problems Europeans now suddenly face is that the natural gas situation just got a whole lot worse with Qatar deciding to stop production, which greatly influences the European economy.
Ultimately, I do think this is a market that will find its way lower, perhaps looking to the 1.16 level. If we do in fact test that area, I think it’ll be worth noting that there is a potential bit of support there based not only on the large round psychologically significant figure but also the 200-day EMA.
Technical Levels and Global Energy Shifts
Rallies at this point in time will have to deal with the 1.18 level, which is a large round psychologically significant figure as well and an area that’s been supported. Ultimately, this is a market that I do think short-term rallies will get sold into, showing signs of exhaustion on short-term charts might be your entry.
I have no interest in buying the Euro. I haven’t really had an interest for a while and now it looks like we have a reason to finally get moving to the downside. For some time, we have been waiting for that last “push” lower. Did we just get it?