EUR/USD Price Forecast – Euro Continues Sideways Grinding

The Euro has pulled back a bit during the course of the trading session on Friday, as we continue to consolidate in the same general vicinity, we have been in. All things being equal, the 1.22 level is an area that has been important as far as support and resistance is concerned, but you could also say the same thing about the 1.23 level above. I think at this point we are simply trying to go back and forth in order to try to break to the upside. This is a market that is continuing to gain mainly upon the weakness of the US dollar, but you should also pay attention to the fact that bond yields in the European Union are starting to rise.

EUR/USD Video 24.05.21

To the downside, if we were to break down below the 1.22 handle, then we could go looking towards the 50 day EMA. Ultimately, this is a market that I think will find plenty of buyers on dips but overall, I think that this is a market that has enough support underneath to keep it going higher over the longer term. I do not have any interest whatsoever in shorting this market, but I also recognize that the market has perhaps formed a little bit of a rising wedge, so it suggests that the market may give us an opportunity to get long at a better price.

If you are looking for a big move, this is not going to be your currency pair. In fact, you can use it as a barometer on US dollar strength or weakness, especially if you do not have the US Dollar Index. You simply turn it upside down and it is roughly the same thing.

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