EUR/USD Price Forecast – Euro Continues to Consolidate

The Euro initially tried to rally during the trading session on Tuesday but gave back the gains to show signs of weakness again. However, we are still very much in a consolidation area, so it does make quite a bit of sense that we continue to see more chop than anything else right now. That being said, it is worth noting that the 200 day EMA underneath at the 1.1830 level is a major area that a lot of traders will be paying close attention to, as it has offered support recently. That being said, I do think that it is only a matter of time before we have to make a longer-term decision and with Jerome Powell speaking in front of Congress for the next couple of days that could be what happens.

EUR/USD Video 24.03.21

Looking at this chart, if we were to break down below the 200 day EMA it is likely that we would see a move towards the 1.16 level, where I see a significant amount of support. The level being broken could open up a move to the 1.15 handle, but at this point in time I think that is probably about as far as this market will go to the downside. To the upside, I believe that the 1.20 level above is extreme resistance, so breaking above there will more than likely send the market looking towards the 1.22 level. That is an area where we have seen a recent selloff and I think it will offer a bit of the ceiling in the market. All things been equal, this is a market that I think is going to remain choppy but generally negative.

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