The Euro has rallied and recovered quite nicely during the trading session on Monday, as we are reaching towards the 1.08 level. At this point, the market looks as if it is running into a little bit of resistance though, and quite frankly the volatility should continue to be a bit of an issue. Ultimately, the market is paying attention to the fact that the Federal Reserve is looking to purchase assets, including mortgage-backed securities. Because of this, the market reacted in a very volatile way, and it’s very likely to continue to be the case.
EUR/USD Video 24.03.20
The Euro has a lot of issues behind it though, so rallies at this point should end up being a nice selling opportunity. Quite frankly, the market has been a bit oversold, so it’s only a matter of time before we get some type of rally, but I think longer term, there are still a lot of issues out there that will force money into the US dollar. There are plenty of shortages out there, so I think that this relief rally, albeit desperately needed, will be faded given enough time. I would be especially interested in shorting this market closer to the 1.10 level, but to be honest I don’t think we get that far. Look for signs of exhaustion on short-term charts and look to sell when you can. Keep in your position size reasonable is probably going to be crucial as well, this is not the time to be over leveraging trades.
This article was originally posted on FX Empire
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