The Euro continues to see a bit of noisy action, with the 1.14 level offering a lot of interest, and the idea that we are trying to get back into the previous consolidation area that has been so important for so long.
EUR/USD
The Euro was volatile early Tuesday, and the market remains choppy and somewhat undecided.
And as a result, I'm watching this closely because the 1.14 level is an area that's been important more than once. I think it comes into the psyche, and the potential market-moving area is something that you should be watching. This is a proxy for the US Dollar Index in general, and it looks like we are giving a little bit back.
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That being said, it's interesting because we are also seeing interest rates rise in America, so the interest rate situation is kind of contradicting this. But I think a lot of this just comes down to the fact that the Euro is oversold. I'm looking to sell this somewhere closer to the 1.15 level if we see some type of exhaustion.
The candlestick for the trading session on Tuesday is obviously bullish, or at least positive-looking, but I don't think this is a market that really has a catalyst to take off to the upside, at least not yet. Now, that doesn't mean it can't change, and it very well could, but as things stand right now, I'm looking for signs of exhaustion that I can start fading.
If we break above the 1.15 level, then maybe we start to see a little bit of momentum. To the downside, if we were to break down below the 1.14 level again, then I think that it would kick off an unwind down to the 1.12 level.
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