The Euro has rallied a bit during the trading session on Thursday but gave back most of the gains as we continue to look a little bit limp. Nonetheless, I do believe that there are buyers underneath it will be looking to push this pair towards the top of the overall consolidation at the 1.12 handle. Short-term trading is probably as good as the Euro is going to be anytime soon, so looking at this you should probably be focusing more on the 15 minute charts.
EURUSD analysis Video
We are currently just above the 200 day EMA and had bounced quite nicely from the 50 day EMA underneath. Ultimately, the resistance at the 1.12 level expense the 1.1250 level. If we were to break above there, then the Euro changes trends, lease for the short term and probably goes looking towards the 1.14 level rather quickly. Alternately, if the market breaks down below the 50 day EMA which is currently trading near the 1.11 handle, the market probably goes towards 1.10 level underneath.
This is a pair that tends to be very choppy on the daily timeframe, so it should be thought of as a day trading venture. It still has a bit of an upward bias considering that we have made “higher lows” as of late, so from a day trading perspective I’d be looking for opportunities to go long but I wouldn’t be looking for more than about 20 pips at a time. With that in mind, we have larger levels to pay attention to, but big moves are very unlikely anytime soon. Proper position sizing will be a major benefit for those who choose to trade this pair.
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This article was originally posted on FX Empire
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