EUR/USD Price Forecast – Euro Bounces to Kickoff Week

The Euro has bounced a bit during the course of the trading session on Monday, as we are looking at the 200 day EMA just above. Because of this, it is likely to be a scenario where we could see further bearish pressure. That being said, a lot will come down to the next thing that the Federal Reserve says, as the risk appetite out there is going to be skewed back and forth by the perceived ability of the Federal Reserve to start tightening.

EUR/USD Video 22.06.21

There are a lot of economic announcements during the course of the week, and several central bankers speaking, so there is the possibility that we get a bit of noise. From a technical analysis standpoint, the 200 day EMA above could offer a bit of resistance, so keep that in mind. If we break above it, then I think the market will challenge the 1.20 level which of course is a large, round, psychologically significant figure that a lot of people will be paying attention to. If we can clear that area, then we will continue the overall uptrend, sending the Euro back towards the highs.

I think the next couple of days are going to end up being very difficult as they will almost certainly be very choppy, due to the fact that there has been a lot of fear put into the market overall. Pay attention to the US bond market, because if we continue to see demand for treasuries, that will naturally drive up the price of the US dollar and other currencies such as the Euro. At this point, I believe that we may form a bit of a consolidation area between the 200 day EMA and the 1.1830 level.

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