- Euro trading remained subdued amid the U.S. Thanksgiving holiday, with price action hovering around key technical levels.
- The pair faces pivotal support and resistance zones that could guide direction, though broader movement continues to hinge on U.S. dollar dynamics.
The euro has been very choppy and lackluster during early trading on Thursday, which makes a certain amount of sense considering that the Americans weren't even on board. After all, it's Thanksgiving in the United States on Thursday. And beyond that, we also find ourselves at a fairly interesting confluence on technical indicators. We are currently testing the 50-day EMA as well as a downtrend line that's been in effect since the highs.
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So, I think this is a situation where we'll have to wait to see how things play out over the next couple of days. Friday could be important, although again, in North America, we'll probably have a lack of volume due to the fact that most Americans don't go back to work on the Friday after Thanksgiving. They typically just take a four-day weekend. If we fall from here, it's likely that traders will look to the 1.15 level as a target and the 1.14 level after that, where the 200-day EMA currently hangs around and where we had seen a massive bounce back in late July.
Key Technical Levels Ahead
If we rally from here, the 1.17 level is an area that I'd be watching very closely as it is a large, round, psychologically significant figure, but it also opens up the possibility of a move to the 1.18 level, which was a major resistance barrier. As things stand right now, we are still somewhat supported, but I still favor the downside at least at the moment, even though we've had a couple of days' worth of positive pressure in this pair. The U S dollar itself has been oversold over the last couple of days. So we'll see if it rolls over here. Keep in mind a lot of what we'll be looking at will be based on the U S dollar and probably not so much the Euro itself.
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