- The Euro has shown quite a bit of choppiness yet again during the session here on Tuesday, as we are just killing time and trying to sort out where to go next.
- All things being equal, it is worth noting that the 1.13 level has been short term support.
- And the 1.15 level above has been pretty significant resistance.
Ultimately, the 1.15 level is an area that you watch from a longer term standpoint. And it's worth noting that recently over the last week or two, we've really seen a bit of hesitation. So I think that once we get through the FOMC and perhaps more importantly, the press conference, we might have a little bit more clarity.
If we break down from here, the 1.12 level is an area that I think a lot of people are going to watch. If we can break down below there, then it's likely that the market goes searching to the 50 day EMA, all things being equal. This is a market that will continue to be noisy, but I think it's getting exhausted unless of course, Jerome Powell says something that really rocks the markets.
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Sideways Likely Without Help from the Fed
I think at best you get sideways action. If we can break above that reason high, the market is likely to go looking to the 1.17 level followed by the 1.20 level. The Euro of course does have the benefit of Germany exiting recession while the United States is thought to be going into recession. But one thing that's worth noting is that the jobs markets are a little stubborn at the moment.
So, we'll have to see how things play out, all things being equal, it's neutral. But once we get out of this little, tiny range, then we might have a little bit more in the way of clarity.
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