The Euro fell in the early hours of Tuesday, but has since seen a bit of a bounce, as interest rates in the United States are continuing to drift lower. However, Germany will have questions about energy.
EUR/USD
The Euro initially fell during the trading session here on Tuesday, but interest rates falling in America have given the Euro a little bit of a reprieve.
That being said, I think the Euro is still facing quite a bit of noise just above, and the 1.1650 level above I think is a major region of noise. I think if we can break above the 1.1650 level, then we need to watch the 1.17 level.
The 1.17 level is an area that I think is going to be resistant. I think it's going to be difficult to get above, but if we do, then that would show the Euro really fighting back, perhaps sending the Euro towards the 1.1850 level.
Technical Resistance and Macroeconomic Pressures
Signs of exhaustion could be selling opportunities as the US dollar continues to be a little bit more elevated against the Euro, despite the fact that there's more risk appetite. And I think a lot of this comes down to the fact that eventually Europe is going to have a problem with energy supply. Now, that might not be forever, but it will be for a while. That will certainly have some negativity in the German economy with the industrial base and the like.
Top Regulated Brokers
The 200-day EMA is where we are struggling a little bit now, and I think signs of exhaustion probably give us an opportunity to buy US dollars. The 1.15 level underneath I think is support.
If we break down below there, then the 1.14 level gets targeted. This would be a big move, and probably accompany a massive risk appetite destruction issue for the overall markets.
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