EUR/USD Price Forecast – Euro Bounces

The Euro broke down during the trading session on Tuesday to look just below the 1.20 level for support. We did turn around to see life again, but at this point the market does look like it is a bit exhausted, and at this point in time I believe that the 1.19 level underneath is an area that being broken to the downside could open up even more selling pressure against the Euro, as we continue to look at the European Union through the prism of vaccinations and lockdowns working against it, but at the same time we continue to see a lot of strength in America due to hotter than anticipated economic readings when it comes to manufacturing and the like.

EUR/USD Video 3.03.21

That being said, if we were to turn around a break above the 50 day EMA, the market is likely to go looking towards the 1.22 handle, possibly even the 1.23 level where we had seen a significant amount of resistance. I think overall during the next couple of weeks we will see a lot of choppy behavior and as a result it is likely that the market will offer both buyers and sellers of reason to get involved. With this being the case, I think that the market will remain very noisy and therefore I think you need to look at range bound systems more than anything else and simply ride through the volatility that is almost certain to be a major factor in this market. In general, I think that we have a lot of noisy trading ahead of us, so money management will be crucial in this market.

For a look at all of today’s economic events, check out our economic calendar.