The Euro plunged on Thursday, as rates in the US spiked. However, we have since seen a complete reversal.
This pair continues to see a lot of short-term choppiness.
The Euro initially plunged against the US dollar on Thursday in reaction to the statements from the President Donald Trump address to the nation as interest rates spiked due to traders not hearing anything about shortening the war and essentially him just reiterating everything, he's been saying for days.
It was a little bit of a surprise for markets to behave the way they did. But once the Americans came on board, we had seen a little bit of a turnaround with the 1.15 level looking to offer support. The 1.16 level is resistance, and it is where we failed from with the 200-day EMA hanging around in the same area.
Market Range and Technical Outlook
Because of all of this and the 50-day EMA sitting just above, I think you have to look at this as a market that is still very much in a range. I have a range of 1.14 to 1.1650, which of course is typical for the Euro; it really doesn't go very far, very quickly under most circumstances. Quite frankly, this is a “range trader’s market” in general.
Top Regulated Brokers
With that, this little bit of a bounce probably sets the market up for another sell-off near the 1.16, or at least an attempt to do so. I am looking to fade next week. Remember Friday is Good Friday, so there will be a lot of markets closed and a lot of traders away from their desk. I think really not much has changed here; we're still just dancing around in the same box, which is also backed up by the 200-day EMA.
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