The euro fell significantly during the trading session on Tuesday, hitting the 1.20 mark, an area that will certainly get some attention due to the fact that the big figure is attracting cash flow and of course the 50-day EMA is just below it. so I think this is another reason to believe that the structure can get some attention. Moreover, we have seen significant resistance in the area.
EUR / USD Video 05.05.21
Ultimately, I do believe we will try to test the highs again, but we may see a lot of buzz in the short term to get there. On the other hand, if we break below the 50-day EMA, then the market is likely to head towards the lower 200-day EMA, which is around 1.1850. All things being equal, the market will continue to be noisy, but I still believe it is in favor of an overall uptrend.
Given all this, I believe that the emergence of some kind of catalyst is only a matter of time, perhaps the number of jobs on Friday will be such a catalyst. I know there are grades all over the place, so overall there is a high likelihood that this will generate a lot of noise. The US dollar is in the background, but if there is a sudden surge to safety, we may see a downside breakout. However, it does not yet appear that we are fully prepared for this.
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