Euro shows a lot of volatility after Draghi comments

The EUR/USD pair has pulled back a bit during the trading session on Thursday, but then bounced rather significantly as we get close to the 1.2150 level. I believe that the market should continue to be very noisy, but I also think that the 1.21 handle underneath is massive support. After all, that was massive resistance that we previously broken above, and I think that it could offer massive support now. However, if we were to break down below that level it’s likely that the market would unwind rather drastically. It is because of this that I think we are entering a very important time for this pair.

With the rising interest rates in America, we are starting to see a lot of bearish pressure in this market, but we are still within the consolidation area, and trying to front run some type of breakdown could be a great way to lose money. It is because of this that we need to see some type of daily close below that level to start selling. Until then, you are best served assuming that nothing has fundamentally changed. After all, even though we have seen a lot of back and forth action, at the end of the day we are looking at roughly the same exchange rate. That should continue to be more important than anything else, how price react. I think at this point, it’s probably going to continue to grind in an erratic manner, and probably best left alone until we get some type of clear and impulsive move.