The Euro rallied quite significantly during the trading session on Wednesday, breaking above the crucial 1.16 level and by extension the 50-day EMA. Keep in mind that it would only take a negative headline to turn things around.
EUR/USD
The Euro rallied quite significantly during the trading session on Wednesday, breaking above the crucial 1.16 level and by extension the 50-day EMA. We are now below the 4.30% interest rate level in the US 10-year and that of course helps with risk appetite continues to be what moves this pair.
The fact that we jumped does make a certain amount of sense not only due to the interest rates in America dropping but the fact that it looks like Europe won't have to worry about energy if we can of course get some type of continuation in the Middle East with the ceasefire into an actual peace agreement.
Technical Resistance and Yield Monitoring
With that we could go looking to the 1.18 level given enough time. It does look like 1.17 is now an area of contention. That makes sense this pair does tend to move very technically so pulling back from there is not a huge surprise but ultimately, I think you've got a situation where maybe a little bit of a pullback and a bounce could be your buying opportunity but keep an eye on the 10-year yield.
If it stays below 4.30% it will probably be good for the Euro. If it jumps above there again watch out for the dollar's about to start raging yet again. In this environment, you would see not only the Euro get hit, but most other currencies as well. At this point, there have been a few other minor attacks, and this could be a harbinger of further escalation if the sides cannot cease.