EUR/USD Price Forecast – Euro Continues Same Consolidation

The Euro rallied a bit during the course of the trading session on Monday to show signs of bullish pressure again, but quite frankly we have been sideways for a while. With this in mind, I think the market is eventually going to go looking towards 1.23 handle, but it may take some time to get there. Short-term pullbacks look like they are being fairly supported, and therefore it is likely that we will see all of these dips attract a certain amount of attention.

EUR/USD Video 25.05.21

The 50 day EMA is starting to curl higher, so that is a bullish sign as well, as it is currently crossing the 1.2050 level. Ultimately, I think that the market could go looking towards the 1.23 handle after the occasional pullback. However, the 1.2250 level is going to be a little bit resistive, but I think all we need is some type of catalyst. Furthermore, if we can break above the 1.23 level, then it is likely that the market goes looking towards the 1.25 handle. All things being equal, I think that is where we get some time this summer but there is a lot of noise between here and there. You can also make an argument at this point that we might be a little bit stretched, so again, I think a pullback is very likely in the short term.

As far as selling is concerned, I would have no interest in doing so until we break down below the 1.20 handle, and meaningfully so. That does not look very likely at this point time, so I think we need to look at this through the prism of trying to find value.

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