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The Euro tried to rally on Thursday as we continue to see a lot of choppy behavior. Central bank outlook continues to be the biggest thing here.
The Euro tried to rally to begin the trading session on Thursday but gave back gains. At this point in time, it looks like we continue to go sideways, and it looks like we have nowhere to be at this point in time.
The 1.18 level continues to be a bit of a magnet for price, and we are sitting just above the crucial 50-day EMA. Quite frankly, I think we've got a situation where the pair just doesn't know where to go and therefore, we will remain hugging the 50-day EMA in the short term.
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EURUSD Chart by TradingView
Ultimately, if we can break above the 1.1850 level it opens up the possibility of a move to the 1.20 level. But we can also say that if we were to break down below the lows of last week maybe we could open up a move down to the 1.16 level, which is right about where the 200-day EMA is hanging around.
Ultimately, this is a market that I think continues to be very noisy and of course will move on to the latest noise coming out of the US economic background. After all we have to wonder about the Federal Reserve and what they are going to do as far as interest rates are concerned.
People are trying to do what they can to get a grasp on the idea that the Fed may or may not cut rates as rapidly as previously expected as the jobs situation in the United States has been better than anticipated. That does slow things down but now we're starting to see people talk about 2027 not so much 2026 and if that ends up being something that catches hold the US dollar will pick up strength yet again because we already know that the European Central Bank is likely to be flat this year as far as monetary policy is concerned.
I think there's so much confusion here that short-term range bound traders are probably the only people bothering with this market in what would probably be thought of as about a 50-pip zone with the 1.18 level.
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