EUR/USD Price Forecast – Euro Breaks Above Short-Term Resistance

The Euro rallied again during the trading session on Thursday to break above the 1.22 handle. The market breaking above there it kicks off the possibility of a move to a fresh, new high, as the market is basically breaking the neckline of “an inverted head and shoulders”, which of course is a bullish sign. Ultimately, that could send this market looking towards 1.24 handle. Pullbacks at this point in time look to be supported, especially near the 50 day EMA.

EUR/USD Video 26.02.21

When you look at the market in general though, it is still stuck in a major consolidation area. Because of this, the market looks very likely to continue seeing back and forth behavior but clearly the Euro is favored over the US dollar in the short term. Whether or not we can break down or out of the overall range that I have marked on the chart would be a completely different question, and I do think that there is a significant amount of resistance between the 1.23 level and the 1.25 handle.

To the downside I see the 1.20 level as major support that extends down to the 1.19 handle. In other words, we are essentially squeezing in a relatively tight range with a slightly upward bias is how I see this market. Short-term back-and-forth with an upward bias is probably the best way to look at this market, as it will almost certainly be driven back and forth by the rolling lockdowns in the European Union while we have significant stimulus coming out the United States.

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