EUR/USD Price Forecast – Euro Bounces

The Euro initially pulled back just a bit during the trading session on Monday, but as the day went on, we started to see Americans jump in and start buying. The Euro of course continues to look very weak longer-term, but the 1.1830 level features previous support that should now be resistance, and then of course the 200 day EMA sits there as well. I think it is only a matter of time before the sellers will return, but in the short term it looks like we might get a little bit of a bounce.

EUR/USD Video 06.04.21

To the downside, I think eventually the market is going to go down to the 1.16 handle, based upon the longer-term charts. It does not necessarily mean that I think we are going to get there overnight, nor do I think that it is going to be easy. Quite frankly, there is nothing in this currency pair that is ever really easy. It has choppy and tight, and therefore I think we are going to continue to see more of that behavior. That does not necessarily mean that it is going to be something to be concerned about, other than you need to understand that it is going to take a while to get to where we are going.

If we did break above the 1.1830 level, then we could go looking towards the 50 day EMA, but at this point in time it does not look as if that is going to be easily done. However, if yields in America continue to fall that may actually help this happen eventually.

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