EUR/USD Price Forecast – Euro Continues Consolidation

The Euro has gone back and forth during the course of the trading session on Wednesday, as the world awaited the Federal Reserve and whatever decision they are going to be making. At this point, it looks as if the market is simply killing time, sitting just below the 1.21 handle. It all comes down to whether or not Jerome Powell says something to make the market believe that the US dollar is going to continue to be hammered or not. After all, the Federal Reserve is extraordinarily loose with its monetary policy, and that is exactly what the market has been looking at for quite some time.

EUR/USD Video 29.04.21

The 1.20 level underneath is an area that I would anticipate a lot of support at, so if we were to break down below there then I think it is likely that the market goes looking towards the 50 day EMA after that. Ultimately, the 50 day EMA would more than likely attract a certain amount of attention just due to the fact that it is so widely followed. Furthermore, it is turning higher, so it is possible that we would be looking at it as a potential buying opportunity. If we break down below there, then it is likely that we go down to the 200 day EMA underneath. The 200 day EMA is near the 1.1830 level, an area that has been important previously, so it will be interesting to see if we can get down there.

On the other hand, if we do rally and break above the 1.21 handle, then it is very likely that we go looking towards the 1.22 handle. The 1.22 handle is an area that has been exhaustive more than once in the past so breaking above there would take more of her as well.

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