EUR/USD Price Forecast – Euro Continues Sluggish Behavior

The Euro went back and forth during the course of the trading session on Monday, as we are stuck between the 50 day EMA and the 200 day EMA indicators. Because of this, we have a lot of “push/pull” in the markets. I suspect that this pair will probably move more or less on yields in America, because it has such a major influence on the value of the US dollar. Looking at this chart, the 200 day EMA sitting at the 1.18 level is also crucial, due to the fact that the 1.18 level has been so important in the past. If we break down below the 200 day EMA, that could open up a somewhat significant move towards the 1.1680.

EUR/USD Video 16.03.21

On the other hand, if we turn around a break above the 1.20 level, it is very likely that we could go much higher, perhaps reaching towards the 1.23 level given enough time. The market is most certainly in an area where it is trying to decide where it is going next, at least for the next several weeks. In the short term, this is a market that probably is going to remain very noisy, especially as the FOMC meeting is in the middle the week, so obviously that will probably keep the US dollar somewhat constrained in both directions until we get through that meeting and statement. Until then, I anticipate that we simply bounce around in this clearly defined sideways action that we have been in over the last couple of weeks.

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