EUR/USD Price Forecast – Euro Continues to Attempt Recovery
The Euro has rallied a bit during the course of the trading session on Wednesday to break above the 1.13 handle, showing signs of life. All things being equal, the market probably goes looking towards 1.14 level based upon the strength that we are seen. That being said, it does not necessarily mean that we are going to shoot straight up in the air, but we are forming a bit of an ascending wedge, so that could end up being another signal to go lower. That being said, there is also the bullish case that could be made due to the fact that the market has been oversold for a while.
EUR/USD Video 09.12.21
When you look at this chart, it is not too much of a stretch of the imagination to see that the 50 day EMA is reaching to the downside, as we are sitting near the 1.1450 level. That is an indicator that I think eventually will come into the picture and could cause a little bit of resistance. However, the short term it looks like we are going to continue to try to build up a little bit of a bullish case, especially as we formed a hammer during the previous session.
Ultimately, this is a market that I think probably remains more consolidation than anything else, but with a slight upward bent over the next couple of sessions. Longer-term, if we break above the 1.14 handle, then we probably go looking towards 1.16 handle. On the other hand, if we start to sell off again, then the longer-term target is still the 1.10 level underneath.
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