EUR/USD Price Forecast – Euro Breaks Down Heading Into the Weekend

The Euro fell a bit during the course of the trading session on Friday, perhaps in a bit of profit-taking, or simply in the sense that the market had overreached its comfort zone. At this point, the market is likely to find plenty of support underneath, near the 1.20 handle. The 1.20 handle is also backed up by the 50 day EMA, as the 50 day EMA is racing towards it. The 1.20 handle of course has a certain amount of psychology involved in it as well, but as you can see lately, we have seen quite a bit of significant bullish pressure.

EUR/USD Video 03.05.21

The 1.21 level is followed by the 1.22 level as far as resistance is concerned. Ultimately, this is a market that you need to look at through the prism of one that is overdone, but it is still very bullish in general. You can see that the market has a lot of noise just above, so it does make sense that we need to pullback in order to build up enough momentum to continue going higher. Furthermore, the US dollar is getting hit against multiple currencies, so it probably will not be any different here either. I do like the idea of buying short-term dips, assuming that I would be trading the Euro at all. (Full disclosure: I absolutely hate trading this pair as it tends to chop more than anything else.) All of that being said, the market is still very bullish so you have to be looking at it through the prism of one that all things being equal should continue to go higher.

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