EUR/USD choppy during Tuesday trading

The EUR/USD pair has been very noisy in general, and it looks likely that the 1.22 level is starting to offer signs of support. I believe that the market will probably continue to pay attention to this area, because it is the bottom of a consolidation area that has been in effect for several months. · FX Empire

Christopher Lewis

Updated Tue, Apr 24, 2018, 10:15 PM

The EUR/USD pair has a significant amount of support underneath, extending down to the 1.21 level which was the scene of a major breakout. That’s an area that should be respected as a major “floor” in the market. I think that it is only a matter of time before we find buyers in this general vicinity, so I suspect that we will bounce from here. If we were to break down below the 1.21 level, the market will breakdown rather significantly, and it will do massive damage to the uptrend that we have been in for some time.

Over the last couple of months though, it’s been a bit difficult as we have been consolidating overall. That makes sense, because I believe we are trying to find enough momentum to continue to change the longer-term trend that had been so negative for so long. The European Central Bank isn’t as hawkish as once thought, but the reality is that if we can get more of a “risk on” move, it’s likely that this pair will rally. Interest rates in America are rising, so that of course is good for the US dollar so that explains why the pair has been so choppy. I believe that the market should continue to be one that you will need a lot of wherewithal to trade, and trust that the market should continue to be one that will cause a lot of headaches if you use too large of a position.