Euro Makes Attempt at 1.15
The Euro has shown itself to be very noisy during the course of the trading week, as we initially fell rather hard, only to turn back around and test the 1.15 level. That being said, there is a lot of confusion and fear out there due to the Federal Reserve looking to tighten monetary policy. This should in theory help the US dollar overall, but it will be interesting to see how this plays out. After all, the market has been rather shocked by the absolute turnaround in the Federal Reserve policy, but at the same time it looks like Europe is trying to pick up its economy again.
EUR/USD Video 17.01.22
If it does, then it is very likely that we could see this pair continue to go higher. If we can break the 1.15 handle, then I believe that the market goes looking towards 1.16 level where a significant selloff began. It will be interesting to see how this plays out but if we do get the opportunity to test the 1.16 level, I think that is where the “rubber meets the road.”
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One thing is for sure, I think that the volatility is going to continue to be a major issue in this pair, and other ones involving the US dollar. The bond market is a mess right now, as it is pricing in the idea of the Federal Reserve making a major mistake, so therefore the dollar will probably continue to be all over the place. Because of this, the EUR/USD pair is probably going to be extraordinarily noisy more than anything else.
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