The EURUSD pair has been moving higher on the back of dollar weakness all across the board during trading yesterday. The reopening of the markets in Europe after the long weekend provided the impetus for this move against the dollar and this is likely to keep the euro buoyed in the short term as the lack of liquidity continues to dominate the markets.
EURUSD Moves Higher
It is always good to take moves during this period with a pinch of salt as these moves are occurring in a market that is very slow and low on liquidity. The volatility is also very low as a result and this has opened up the possibility of moves in either direction that are likely to be reversed once the holidays get over and the traders are back at their desks in the second week of January or so. That is why it is easy for the bulls to move the prices in a specific direction at this point of time but there is no guarantee that these moves would not be reversed.
The euro has been pushing higher against the dollar during this period and now we are seeing the pair trading just above the 1.19 region as of this writing. We are not yet very convinced of the move as there has not been any major fundamentals or economic news that has supported the strength in the euro or the weakness in the dollar. We believe that this is just choppy price action that is likely to continue in the days to come till the holidays are over.
Looking ahead to the rest of the day, we do not have any major news from the Eurozone or the US and so we can expect the bullish consolidation to continue for the rest of the day.
This article was originally posted on FX Empire