EUR/USD Price Forecast – Euro Continues Consolidation

The Euro gapped lower to kick off the trading session on Monday but then filled that gap rather quickly. In fact, we have not only fill that gap but have broken above it. Nonetheless, we are still very much in a major consolidation area and that is worth paying attention to. The 1.20 level above is a significant barrier that we will have to pay attention to, and of course the 50 day EMA is racing down towards it. At this point time, we are essentially stuck between the 50 day EMA above and the 200 day EMA below.

EUR/USD Video 23.03.21

Pay close attention to the yields in America, because if they continue to rally that will certainly have a negative effect on this pair. The Euro seems to be recovering just a bit for the session after we had a rough couple of days at the end of last week, but I do not think that anything has changed from a substantial point a view. With that being the case, the market is likely to continue to see noisy behavior, and now I think we are simply waiting to see if we can break down below the 1.18 handle, or if we can break above the 1.20 level. Until that happens, the market is likely to be nothing but noise, but if you are a short-term trader you may find it a good place to trade the 15 minute charts. The US dollar I believe is going to continue to be the main driver of this market as well as many others, so that is most certainly worth paying close attention to the US Dollar Index.

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