The Euro has been weak on Tuesday, as the interest rates in the United States have risen in reaction to the idea that the Americans and Iranians aren’t going to speak.
This pair continues to be held into a range.
The Euro has fallen pretty significantly during the trading session on Tuesday as we continue to see a lot of volatility at the moment. The 1.18 level has offered significant resistance, and I think that is resistance up to the 1.1850 level.
The markets are dropping now based on the fact that there are a lot of concerns out there about the Middle East and whether or not we can actually come to some type of agreement for the Iranians. The 50-day EMA at the 1.1670 level is a potential target. If we were to break down below there, it is opening up the possibility of a move to the 1.16 level.
Rangebound Trading and Key Levels
This is a market that I think continues to see a lot of range-bound trading anyways, that is typical for the Euro. Right now, I think in general we are looking at the 1.14 level as the floor and the 1.1850 level as the absolute ceiling in the EUR/USD pair. With this, I do believe that you probably continue to see a lot of volatility.
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I also think that this will literally move on to the latest headlines. Pay attention to the 10-year yield in America because if it starts to jump again based on concerns out of Islamabad, but the Middle East in general with the Iranians and the Americans, that should favor the US Dollar. Energy will be an issue for Europeans and of course people will be looking at the safety of the greenback through the global financial system.
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