Advertisement
Advertisement

EUR/USD Price Forecast – Euro Bounces From 50 Day EMA

By:
Christopher Lewis
Published: Nov 12, 2020, 14:34 UTC

The Euro bounced a bit off of the 50 day EMA during the trading session on Thursday but looks as if it is struggling to go much higher.

EUR/USD

In this article:

The Euro bounced a bit during the trading session on Thursday, as the 50 day EMA has offered little bit of support. Ultimately, the market still looks as if it is simply going back and forth in the range between 1.20 and the 1.15 level. As we are roughly in the middle of it, there is no point in trying to put a lot of capital to work here.

EUR/USD Video 13.11.20

If we do break below the 50 day EMA, it is likely that we could go looking towards 1.16 level, but you should keep in mind that this is a market that tends to grind back and forth in general, so you have to be willing to accept the fact that it could turn around on you rather quickly. However, you have a much better chance of trading on the outer bounds of the 500 point range, which of course could increase your odds. All things been equal though, I do believe that the US dollar is going to get more of a bid as we worry about coronavirus figures and the European Union is slowing down again.

Ultimately though, the United States is now dealing with a surge in coronavirus figures so that will somewhat protect the Euro. We continue to trade based upon coronavirus figures, economic lockdowns, and the like. There is a strong argument to be made for a bit of a safety bid, perhaps in the US Treasuries, but at this point in time it looks like we are simply killing time in this relatively well defined range. The 1.15 level underneath is of course is backed up by the 200 day EMA, so that makes it even more important.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement